Exchequer returns - May 2025
Commenting on exchequer figures for May, Orla Gavin, Head of Tax at KPMG, says:
The dip in corporation tax receipts in May, down just over €1billion (30%) on May 2024, is unexpected, given the steady performance of corporation tax payments to date this year.
While May is a significant month for corporate tax payments, the decline this month may be due to the concentrated nature of corporation taxpayers rather than a general indication of business performance owing to global trade uncertainties.
The key months of June and November will be crucial in assessing whether the government’s corporation tax forecasts for the year are achievable.
The performance of income tax receipts, up 4.5% on last year, and VAT receipts, up 5.5% on last year, remains strong.
Ireland is fortunate to be facing the challenging global environment from a position of a strong domestic economy enjoying record levels of employment and robust consumer demand. Today’s ECB interest rate cut from 2.25% to 2% will also give a boost to businesses.
Given the increasing importance of domestic business to Ireland's economy, the Government's action plan to enhance business competitiveness and productivity will be crucial in the coming months.
