{"id":101818,"date":"2025-10-03T21:47:09","date_gmt":"2025-10-03T21:47:09","guid":{"rendered":"https:\/\/www.europesays.com\/ie\/101818\/"},"modified":"2025-10-03T21:47:09","modified_gmt":"2025-10-03T21:47:09","slug":"state-could-gain-e34bn-in-corporation-tax-next-year-says-donohoe-the-irish-times","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/ie\/101818\/","title":{"rendered":"State could gain \u20ac34bn in corporation tax next year, says Donohoe \u2013 The Irish Times"},"content":{"rendered":"

Government could take in \u20ac34 billion from tax on company profits next year, \u20ac6 billion more than originally predicted, Minister for Finance Paschal Donohoe confirmed on Friday. <\/p>\n

The Minister was speaking after official figures showed Government spending<\/a> of \u20ac90 billion slashed the State\u2019s cash surplus by \u20ac3.6 billion at the end of September.<\/p>\n

He said corporation tax, levied on company profits, could yield \u20ac34 billion in 2026 \u2013 \u20ac6 billion more than the \u20ac28 billion forecast earlier this year.<\/p>\n

Mr Donohoe explained that Organisation for Economic Co-operation and Development (OECD) talks on a deal likely to hit the Republic\u2019s tax take from multinationals based here have slowed down.<\/p>\n

\u201cI do expect them to conclude and that will pose a challenge for us,\u201d he cautioned.<\/p>\n

[\u00a0Ministers in fraught negotiations over tightest budget in yearsOpens in new window<\/a>\u00a0]<\/p>\n

An OECD deal will clamp down on multinationals that channel profits from other countries through the State to cash in on low Irish corporate tax rates. <\/p>\n

The Minister added that the Republic could begin to feel the impact of OECD changes on corporate taxes from 2027 on. <\/p>\n

Exchequer returns, which detail Government revenue and spending, showed workers and businesses paid \u20ac73 billion in taxes in the nine months to the end of September.<\/p>\n

The figures came as the Government put the final touches on Budget 2026<\/a>, which it is due to outline next Tuesday, October 7th.<\/p>\n

Mr Donohoe hinted at measures to aid business, and a VAT cut for hotels and restaurants is widely expected, but he said income tax would remain unchanged. <\/p>\n

\u201cNon-tax\u201d income reached \u20ac18.2 billion, bringing the total collected by Government over the first nine months of the year to \u20ac91.2 billion.<\/p>\n

Total Government spending rose by \u20ac11.7 billion to \u20ac89.8 billion by the end of last month, leaving the State with a surplus of \u20ac1.4 billion, against \u20ac5 billion at the same point last year.<\/p>\n

A transfer of \u20ac6.1 billion to the Future Ireland Fund, and the Infrastructure, Climate and Nature Fund, accounted for more than half the increase in spending over the nine-month period.<\/p>\n

The Oireachtas <\/a>established both funds to deal with likely future demands on State finances, including spending on infrastructure, climate action and pensions.<\/p>\n

Mr Donohoe said the Government would earmark a further \u20ac6.5 billion for those funds next year, bringing their combined total to \u20ac24 billion by the end of 2026.<\/p>\n

[\u00a0Donohoe warns of tax vulnerability after steep drop in August receiptsOpens in new window<\/a>\u00a0]<\/p>\n

Spending by Government departments including health, education and public services rose by \u20ac5.4 billion to \u20ac77.5 billion.<\/p>\n

\u201cNon-voted\u201d expenditure, which covers all other Government spending and includes the transfer to the two State funds, rose \u20ac6.3 billion to \u20ac12.3 billion, the returns show.<\/p>\n

Corporation tax reached \u20ac20 billion by the end of September \u2013 \u20ac2.2 billion more than during the first nine months of 2024.<\/p>\n

Corporation tax includes a \u20ac1.72 billion payment from tech giant Apple, which was last year ordered by the Court of Justice of the European Union to pay the State \u20ac13 billion in back taxes.<\/p>\n

\"\"Should we put more money into Irish soccer? <\/p>\n

The State collected \u20ac25.8 billion in income tax from workers over the nine-month period, an increase of \u20ac1 billion on the same nine months last year.<\/p>\n

Shoppers paid \u20ac18.8 billion in VAT over the first nine months of this year \u2013 \u20ac900 million more than in the comparable period in 2024.<\/p>\n

Government collected \u20ac3.6 billion in VAT in September, one of the six months of the year during which the tax must be paid.<\/p>\n

Drivers, drinkers and smokers paid \u20ac4.8 billion in excise in the period to the end of last month, according to the figures.<\/p>\n","protected":false},"excerpt":{"rendered":"Government could take in \u20ac34 billion from tax on company profits next year, \u20ac6 billion more than originally…\n","protected":false},"author":2,"featured_media":101819,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[73],"tags":[10471,79,18,19,17,4766,46],"class_list":{"0":"post-101818","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-business","8":"tag-budget","9":"tag-business","10":"tag-eire","11":"tag-ie","12":"tag-ireland","13":"tag-oireachtas","14":"tag-paschal-donohoe"},"share_on_mastodon":{"url":"","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/posts\/101818","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/comments?post=101818"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/posts\/101818\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/media\/101819"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/media?parent=101818"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/categories?post=101818"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/tags?post=101818"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}