Corporation tax take in November up almost a third on same month last year

By David Young, PA

Corporation tax take in November was up almost a third on the same month last year, sharply reversing a recent slump in revenue generated from business profits.

The €6.3 billion collected was up €1.3 billion (27 per cent) on the receipts for November 2022.

The marked increase in corporation tax take comes after three successive months of drops in year-on-year revenue received by the exchequer from that tax head.

November is the key month for corporation tax receipts as it contains the returns from a number of large multinationals operating in Ireland.

Total corporation tax revenues in the year to date now stand at €22 billion – 0.9 billion (4.2 per cent) ahead of last year.

This figure is broadly in line with expectations as set out in Budget 2024.

When other tax revenue was taken into account, the exchequer was left with a €5.4 billion surplus in November.

Commenting on the figures, Minister for Finance Michael McGrath said: “The end-November exchequer returns confirm that we are, broadly speaking, where we expected to be at this point in the year.

“The growth in income tax and VAT receipts we have seen over the course of the year points to the fundamental resilience of our economy despite all the external challenges we are facing.

“The stand-out feature of the November performance is, of course, corporation tax: after three months of decline, a large increase in receipts this month means this revenue stream is once again comfortably ahead of last year.

“However, it is crucial to place this in context. While corporation tax is now four per cent ahead of 2022, it is clear that the era of persistent over-performances is coming to an end.

“The volatility in this revenue stream highlights the importance of ensuring that permanent fiscal commitments are not made on the basis of temporary receipts.

“Instead, the establishment of the two new long-term savings vehicles (the Future Ireland Fund and the Infrastructure, Climate and Nature Fund) will use these windfall corporation tax(es) to help finance known future fiscal challenges, such as an ageing population, climate change and digital transition.”