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Corporation tax staged recovery in May
Minister for Finance Michael McGrath (Pic: RollingNews.ie)

07 Jun 2024 / taxation Print

Corporation tax staged recovery in May

Figures from the Department of Finance show that the Exchequer took in €35.2 billion in tax in the first five months of 2024 – an increase of 6.2% on the same period last year.

Income tax recorded a 6.7% annual increase to €13.9 billion in the five months to the end of May, while VAT was up 8% to €10.8 billion.

Corporation-tax receipts were flat at €6.3 billion, but this represents a recovery after a decline in the first three months of this year.

For the month of May alone, €3.6 billion was collected in this category – up €800 million on the figure for May 2023.

Surplus

Total gross spending for the five months was almost 15% ahead of the same period last year, at €38.8 billion, and was also 2.6% of the department’s projections for this year.

An Exchequer surplus of €800 million was recorded in the five-month period – an improvement of €1.4 billion on last year, although the year-on-year comparison is skewed because of the transfer of €4 billion to the National Reserve Fund last year.

For the month of May alone, tax receipts of €2.7 billion were almost 15% ahead of the same month last year, led by VAT and corporation tax.

The Minister for Finance Michael McGrath described the figures as “a welcome indicator of the strength of the economy”.

Noting the spike in corporation tax in May, however, the minister warned that the “significant volatility, in both directions” seen so far this year was “yet more evidence of the unreliability of these highly concentrated receipts, and the associated risks this brings to our public finances”.

Gazette Desk
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