168% surge in corporation tax in September

In September, corporation tax payments surged by 168% compared to the same month last year, according to Exchequer Returns. The majority of the increased tax revenue came from foreign-owned corporations prepaying their taxes, with an approximate €2 billion payment being made earlier than expected. This means that payments due later in the year will be lower than anticipated.

So far this year, corporation tax receipts have been 24% higher than the previous year, totaling €22.6 billion. Other taxes are also performing well, with overall tax payments up by 10.7% compared to last year, excluding one-off payments from Apple's tax settlement. Income tax payments for the first nine months of the year were 7.8% higher than last year, at €27.7 billion.

VAT receipts were up 8.9% year-to-date, but excise tax on petrol and diesel saw a decline of 8.4% due to recent government cuts. The Department of Finance's White Paper estimates that the government will exceed its spending limit for 2026 by €1.5 billion. While the government's overall tax collection forecast is on track, it has not accounted for the upcoming Christmas Bonus, which will further increase the overspend.

Despite this, the tax department expects tax collections to meet expectations for the full year. Tax expert Peter Vale noted that while there may be timing issues causing lower receipts in future months, the current corporation tax situation appears robust. He suggested that the government might consider reducing the 33% capital gains tax rate to stimulate investment in the future.