An additional €3 billion in corporate tax was collected by the Government last month after several big multinationals “front-loaded” their end-of-year tax payments to Revenue.
Because the payments were made ahead of time, receipts for November and December would “be down” on last year, a Department of Finance spokesman said.
He also warned that the department’s forecast for corporation tax for the full year had been revised down slightly to €34 billion as other payments expected this year would not now arrive until early next year.
The latest exchequer returns, published by the Department ahead of Tuesday’s budget, show the Government collected €4.9 billion in corporate tax in September, more than three times the amount collected in the same month last year.
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On a cumulative basis, receipts from the business tax came to €22.7 billion for the nine-month period, up by €4.4 billion (24 per cent) on 2025.
The Government’s budgetary arithmetic was also boosted by income tax, which generated €27.8 billion on a cumulative basis, €2 billion (7.8 per cent) ahead of last year, reflecting the strength of the State’s labour market.
VAT receipts for the period came to €20.5 billion, up €1.7 billion on 2025, as consumer spending remained strong despite the uncertainty.
Across all tax channels, receipts were up (when adjusted for the Apple tax payment) by 10.7 per cent to €78.9 billion.
“While there are significant distortions caused by the timing of corporation tax payments, today’s receipts continue the positive trend we have seen over the course of the year,” Minister for Finance Simon Harris said.
“Robust revenue growth reflects an economy that has been running at full employment for the longest stretch in the history of the State,” he said.
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The Government also published an estimate of receipts and expenditures as part of a pre-budget White Paper, which showed it expected to run a budget surplus of €13.5 billion in 2027 even after Tuesday’s €8.5 billion budget package.
Tax receipts for this year are expected to hit a record €110.5 billion before climbing to €119 billion in 2027.
“Both publications tell the same story: we have a resilient economy and strong public finances,” Harris said.
“This gives us the capacity to deliver a budget on Tuesday that will reward work and effort, continue to invest in our public services and infrastructure, and save for the future,” he said,
The latest exchequer numbers indicated that total gross voted expenditure for the nine months to the end of September was €83.4 billion, which was €5.9 billion (7.7 per cent) ahead of last year.
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The Irish Fiscal Advisory Council, however, warned that the Department of Health was heading for its second-largest overspend outside of the pandemic.
Overruns have risen from €390 million in July to €650 million in August, and €730 million in September, it said in response to the latest figures.
“The key takeaway is that overspends continue and strong revenues are offsetting them for now. But the Government is relying heavily on risky corporation tax,” it said.
The White Paper 2026 surplus is €2.3 billion smaller than forecast in March, and the budget will reduce it further, it said.
Minister for Public Expenditure Jack Chambers has already forecast overruns across departmental budgets of €700 million this year.
“Budget 2027 will continue investment in critical infrastructure and public services, while placing an enhanced focus and emphasis on reform, efficiency and driving better value for money so that public spending delivers real and tangible improvements in people’s daily lives,” he said.
Peter Vale, tax partner with Grant Thornton Ireland, said: “The last set of figures pre-Budget 2027 show the exchequer in a rude state of health.
“The strength of the domestic economy is reflected in robust income tax and VAT receipts, notwithstanding the reduction in the VAT rate for the hospitality sector that took effect on 1 July.”
