Exchequer returns - November 2025
Commenting on exchequer figures for November, Orla Gavin, Head of Tax at KPMG, says:
With the publication of November's Exchequer figures, it is clear that it’s another record year for underlying Corporation Tax receipts. Year-to-date corporation tax receipts on profits are up €3.8 billion, or 15%, compared to last year, with November delivering a significant boost as companies pay the second tranche of tax on their 2025 profits. Earlier concerns about US tariffs impacting Irish tax receipts have not materialised to date with the exchequer performing strongly throughout the year.
Income Tax and VAT receipts both posted strong gains compared to last year, with Income Tax rising by €1.5 billion (4.6%) on the back of strong labour force and wage growth, and VAT increasing by over €1 billion (5%) due to price inflation and sustained consumer demand. However, this robust tax performance was set against a backdrop of rising unemployment, which reached 5%, and inflation climbing to 3.2% in November 2025, with both figures surpassing expectations. Factors include a youth population surge, tourism slowdown, AI disruption, migration, and higher grocery and energy costs.
While modest economic growth is anticipated for 2026, Ireland's underlying economic strengths continue to support ongoing investment and innovation. This resilience is especially relevant amid recent public debate on the country's reliance on a concentrated group of major taxpayers. Rather than viewing this concentration solely as a vulnerability, Ireland can leverage its track record of attracting foreign investment. By adopting clear, stable, and competitive policies, such as simplifying the tax system and prioritising innovation, perceived risks can be turned into opportunities for sustainable growth.
