Commenting on today’s exchequer figures for August, Tom Woods, Head of Tax at KPMG, says:
“Today’s exchequer returns show a significant increase of €1.9 billion in corporation tax receipts compared with the same month last year. Corporation Tax receipts for August have been volatile with a year-on-year drop of €1 billion in 2023 and a year-on-year increase of over €1 billion in 2022.
With only a small number of companies paying tax in August, the year-to-year swings underscore the dependence on some large corporates and the unpredictability of receipts from those corporates. It also highlights the importance of investing “surplus” receipts in the Future Ireland Fund for use in more economically challenging times.
The steady growth in income tax receipts to date continues with €2.6 billion collected in August, up €82 million on the same month last year and in line with an economy operating at near full employment.
With Budget 2025 only weeks away, exchequer receipts are ahead of last year by €6.7 billion and will no doubt influence the Government’s final spending and tax plans. While the signalled personal tax measures in Budget 2025 will have a positive impact on workers, we would urge the Government to also introduce effective measures to tackle the cost of doing business, and to introduce tax measures to drive the supply of affordable housing."
