Exchequer returns May 2026
Commenting on today’s Exchequer figures for May, Orla Gavin, Head of Tax at KPMG, says:
"May receipts across the key tax pillars of income tax, corporation tax and VAT have yet again outperformed last year, with total tax receipts up by €2.2 billion or 6.1% on last year.
Year on year growth of 7.5% in income tax receipts was notable in the context of restructuring within parts of the technology sector, suggesting that job losses to date have not materially impacted the broader labour market and instead point to a rebalancing of roles across the economy.
Growth of 7% in VAT receipts in the year to date aligns with today’s CSO data indicating that domestic economy growth in the year to date is driven by increased personal consumption along with a rise in Government expenditure.
Corporation tax receipts for May were up 9.7% on 2025 indicating healthy corporate profitability, but the real test lies ahead . With June and November receipts set to shape the full-year outcome, current exchequer strength must be viewed through a lens of ongoing uncertainty from a myriad of factors outside of Ireland’s control.
One such factor, is the prospect of the ECB raising interest rates which warrants close attention given the potential impact on investment and transactional activity.
Another area of uncertainty is the tax revenue due from in-scope large multinational and domestic groups under the OECD-backed 15% minimum tax rate, with the first payment deadline falling at the end of this month. It will be interesting to see whether the Government’s projected additional €3 billion, built into its 2026 tax forecasts, will begin to materialise.
Ireland must build its strong track record of forward-looking tax policy to support the next phase of economic growth. Ireland’s upcoming presidency of the EU provides a valuable platform to advance the competitiveness agenda focused on simplification, reducing administrative burdens on business, and supporting innovation, productivity and investment."
