Government tax receipts surged by almost 9 per cent to a record \u20ac106 billion last year despite the uncertainty caused by US tariffs.<\/p>\n
The year-end exchequer returns, published by the Department of Finance on Tuesday, showed the Government collected \u20ac34.7 billion in corporation tax<\/a> in 2025, \u20ac4.4 billion down on the previous year.<\/p>\n However, the 2024 total was inflated by almost \u20ac11 billion from the Apple <\/a>tax case. Stripping this out, underlying corporate tax rose by 17 per cent to \u20ac32.9 billion in 2025.<\/p>\n \u201cIt is important to note that the increase in this revenue stream is partly explained by the fact that some companies may have decided to frontload their exports due to the introduction of tariffs by the United States,\u201d T\u00e1naiste and Minister for Finance Simon Harris said.<\/p>\n He noted that corporate tax receipts now accounted for almost one third of all tax revenues collected by the State.<\/p>\n \u201cLet\u2019s be clear, these receipts are very welcome. They do reflect Ireland\u2019s position as a top destination for the foreign direct investment (FDI),\u201d he said.<\/p>\n \u201cThat didn\u2019t happen by accident…we worked very hard to attract that investment into our country,\u201d Mr Harris said.<\/p>\n He also welcomed a landmark deal agreed this week by almost 150 countries on a package of measures covering the operation of a new global minimum tax for multinational companies. <\/p>\n The 15 per cent minimum tax rate, known as pillar two, was a key part of an OECD agreement on international tax reached in 2021. <\/p>\n Despite warnings about the increasingly concentrated nature of Ireland\u2019s business tax base, corporate tax receipts are expected to rise again in 2026 as this new 15 per cent rate kicks in. Until now, companies have paid corporation tax at 12.5 per cent.<\/p>\n The latest exchequer figures showed income tax, traditionally the Government\u2019s largest tax channel, rose by 4.3 per cent to \u20ac36.6 billion, broadly in line with official forecasts.<\/p>\n