Public finances boosted by another spike in corporate tax receipts
corporate tax
in June.
Exchequer returns for the first six months of the year show the business tax generated €7.4 billion last month, which was €1.5 billion or 25 per cent up on the same month last year.
June is the second most important month of the year for corporate tax - behind November - as it reflects payments from companies with financial years ending in December, which include Google, Meta, Microsoft and Intel, all of which have big operations here.
After a fall-off in receipts in May, there had been concern that US trade policy uncertainty might be affecting the profitability of these firms.
READ MORE
But the latest figures, published by the Department of Finance, appeared to dispel those concerns with corporate tax receipts - on a cumulative six-month basis - up 7.4 per cent on last year at €13.1 billion and ahead of the department's own forecasts.
Nonetheless Mr Donohoe warned the month-to-month changes highlighted the volatility of corporate tax.
'Corporation tax receipts in June have seen a sharp increase, which follows a sharp decline last month,' he said.
'This serves as a reminder of the extreme volatility in this revenue stream, and of its inherent unsuitability as a basis for permanent spending commitments,' Mr Donohoe said.
'That is why we have established the Future Ireland Fund (FIF) and the Infrastructure, Climate and Nature Fund (ICNF) to set aside some of this potentially temporary revenue to help further protect us in the future,' he said.
'Last month, Government transferred some €3 billion into the two funds, and when the remaining transfers are made towards the end of this year, there will be around €16 billion in the FIF and ICNF," Mr Donohoe said.
The latest exchequer figures showed overall tax receipts were €49.5 billion in the first six months of the year, up by 4.5 per cent on the first half of last year.
When once-off tax revenues of €1.7 billion arising from the European court ruling against Apple are excluded, the department said 'underlying' tax revenues stood at €47.7 billion, which was a 6.7 per cent up on last year.
On a cumulative six-month basis, income tax receipts of €17.4 billion were 4.3 per cent ahead of last year, reflecting the ongoing strength of the labour market with headline unemployment remaining at a low of 4 per cent.
June was a non-VAT-due month and therefore monthly receipts 'relatively modest,' the department said.
Cumulative receipts from the transactions tax for the six-month period came to €11.6 billion, up by almost 6 per cent on last year's total at this stage.
Total expenditure for the first half of the year amounted to €50.9 billion, up by 8.2 per cent on 2024 and ahead of the department's profile by 0.7 per cent.
The Irish Fiscal Advisory Council, the Government budgetary watchdog, is warning that overruns in day-to-day public spending are likely to top €2 billion this year.
The department noted that year-on-year capital spending levels have increased substantially, with capital spending up 22.5 per cent overall.
Minister for Public Expenditure Jack Chambers said: 'Today's figures show a significant increase in capital expenditure which underscores Government commitment to investing in the infrastructure our community needs and which is critical to enhancing our economic competitiveness,' he said.
At a headline level, an exchequer surplus of €4.5 billion was recorded in the first half of the year.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Irish Examiner
2 hours ago
- Irish Examiner
Trump tariffs: 'No sign of shock to Irish property market'
A much-feared economic shock to Ireland's property market by Donald Trump's tariff policies has failed to materialise. Earlier this year, MyHome had warned the speed at which house prices are increasing could be slowed by the prospect of a tariff war between the US and the EU. MyHome warned the economic fallout from such a 'war' could seriously dampen house sales because Ireland's housing market has become too heavily dependent on 'high-income earners working in multinational sectors'. However, MyHome's latest e report states there is 'no sign of any Donald Trump hangover in Ireland's housing market'. 'Clearly uncertainty following [US] president Trump's 'Liberation day' tariffs hasn't been sufficient to dent Ireland's housing market. There is little sign of uncertainty relating to president Donald Trump's tariff policies holding back demand from prospective homebuyers. It instead points out that vendors felt sufficiently confident in April, May, and June to raise their prices regardless of the expected tariff war by a further 4%, or by €20,000 on the quarter. It said typical transactions are being settled 7.5% above the asking price. One in six properties are being sold by 20% or more over. 'Competition for homes remains fierce,' the report states. It found that the average approval in April was €337,700, up 7.8% on the year, reflecting the current pace of average pay growth at 5%-6%. The report states: We now know the average first-time-buyer borrowed 3.4 times their income in 2024, up from a 3.2x multiple in 2022. MyHome managing director Joanne Geary. The firm's latest report states that the average first-time-buyer borrowed 3.4 times their income in 2024, up from a 3.2x multiple in 2022. Picture: Tom Honan 'This change has pushed up house prices by €15,000-€20,000.' MyHome managing director Joanne Geary said: 'When MyHome released our property report for Q1 last April, there was considerable concern about the effect of a potential trade war on the property market. 'Now, after months of speculation, threats, and uncertainty, we can see that the potential of punitive tariffs has had a limited impact on the housing market, with strong demand still in evidence.' She said annual asking price inflation around the country is now running at 7%, compared with 8% at the end of the first quarter. Dublin has seen an increase of 5.1% in asking prices over the year while, outside the capital, asking prices have risen by 7.9%. The median price in Cork was €325,000 in the second quarter of the year, with inflation at 10.2% and Cork City prices up even more sharply by 11.7% to €335,000. 'Average mortgage approval values and volumes have soared to record highs,' she said. The most recent Banking & Payments Federation Ireland data for May shows total mortgage approval values are up by a staggering 17.8% over the year, while the number of approvals has risen by 10.5%. 'Competition for homes is still intense, with an average time to sale agreed of just 2.6 months and the average home selling for 7.5% over the asking price.' She added: 'As has been the case for some time, we have yet to see a significant uptick in supply. 'At end-June 2025 there were 12,563 properties listed for sale on MyHome, up by just 1% compared with the same period of 2024. 'This stagnant level of growth is unhelpful and will give no solace to a Government in desperate need of home completions.' She said that while there will be "some improvement" in the number of completed houses in 2025, the numbers will "fall well short" of the 50-60,000 units required in 2025.
Irish Examiner
4 hours ago
- Irish Examiner
Caitríona Redmond: These are the red flags to look for when buying online
From the rapidly increasing price of food to the cost of rent or a mortgage, we are all feeling the squeeze. With less money and a quality of life to maintain, small wonder more of us are turning to alternative marketplaces to buy and sell what we want. Buying from genuine retailers and resellers gives us, as consumers, extra protections such as guarantees, warranties and rights if the goods are faulty. What happens when you opt to buy elsewhere in search of a bargain or that must-have product? Watch out for places where you'd ordinarily trust the seller like community groups on Facebook or WhatsApp. Look for red flags like dramatically low prices for popular items and pictures of items such as new runners sitting on top of branded boxes. The boxes may be authentic but pay attention to stitching, sole patterns, and logo size or placement. In the case of shoes, buying fakes can lead to a world of pain over time. Soles and supports in shoes are designed and developed to support the foot, arches, and ultimately your back. A counterfeit pair of shoes is highly unlikely to have the same manufacturing standards. The old saying of 'you pay cheap, you pay twice' comes to mind. Wearing or owning fake clothes on holidays could also result in hassle. According to the US Customers and Border Protection, visitors can only possess one counterfeit item per type for personal use. In 2024, over 1 million clothing items and more than 600,000 pieces of footwear were seized for breach of intellectual property rights, otherwise known as counterfeiting. For example, each tourist can only possess one pair of runners and one t-shirt that is counterfeit. Imagine having your suitcase opened and holiday wear items removed under this rule? Everything over this individual item limit can (and will) be seized and destroyed. Food isn't immune to counterfeiting either, unfortunately, and many products have been 'shamrock washed' to make them look 100% Irish grown or produced. Shamrock washing is the process of making a product look Irish when it isn't. Honey is one of the worst offenders, but Irish beekeepers are doing all they can to keep this traditional art alive. It's soul-destroying to see honey that looks genuine, while the label says that it contains a blend of Irish and non-EU honey. Real Irish honey is expensive and for good reason. Most of the Irish beekeeping community are hobbyists (my family included). A 300g jar of raw, locally produced honey will set you back over €8. It's also likely to be crystallised or set, as opposed to a runny golden liquid. Raw honey isn't heat-treated, and the crystals form rapidly as a result. If you do see a genuine local beekeeper offering jars for sale online though, snap them up! Looking at those community groups online, it's not uncommon to see locals selling cakes or treats online. Boxes of cupcakes may look lovely but preparing food for sale is a huge responsibility. The first questions I'd be asking are if they have been registered as a food business, have they HACCP training, and what their allergens are. All of these are required by law for any individual or business preparing food for sale in Ireland and a minimum standard for selling food. Marketplace can be just the spot to pick up items of furniture, clothes and equipment to give them a second life. Watch out for what you are signing yourself up for, and when buying larger items, make sure you have a delivery service in place, or you can pick up that bulky set of shelves yourself. After all, a discount set of shelves in Ballybofey without delivery included to Ballybunion is no longer a bargain. Likewise, anybody who has used the local Marketplace or given away items for free is more than familiar with the local couch surfer who will comment under the post with lightning speed saying 'first' or 'still available?'. Make sure you set out your terms in your original sales post, being clear about what time you are free, and how you will get in touch with the recipient. Sometimes second-hand items are not always the best choice. In particular, child car seats which are designed to protect precious cargo in the event of an accident should only be bought new. The buyer has no way of knowing whether a second-hand seat has been involved in an accident, and its effectiveness is reduced as a consequence. The most fraught part of using these community groups and websites is connecting to exchange the goods. Make sure you confirm the agreed price in writing before setting a date, place and time. Where possible, don't meet a potential buyer or seller alone and arrange a meeting place away from your home or business. Don't hand over the cash or payment before making sure that you are happy with the item you have selected and ask for documentation and copies of any warranties or guarantees, particularly when buying an electrical item. Finally, if in doubt, walk away; it's not worth taking any risks. THE EXTRA FACTOR If you must pay for something online, make sure you have extra factor authentication on your card transactions and bank account. I also recommend two payment service options when buying online. The first is PayPal, which offers an extra layer of security as your card details are held elsewhere. The ability to request a refund if an item doesn't arrive on time or as expected is top notch. Secondly, using either ApplePay or GooglePay. These are more modern methods of paying online and by tapping in store. Every single transaction is allocated a unique identifier that cannot be duplicated or used a second time. This prevents your card from being skimmed and your bank account cleared. Read More Life Hack: Cupboard foods to move to the fridge when it gets hot
Irish Examiner
4 hours ago
- Irish Examiner
Government seeks to beef up Ireland's competitiveness
The Competition and Consumer Protection Commission is to be given new powers and there will be a significant investment in artificial intelligence (AI) as part of a range of measures aimed at boosting competitiveness. On Monday, Taoiseach Micheál Martin is hosting a competitiveness summit along with Tánaiste Simon Harris and enterprise minister Peter Burke as trade talks between the EU and US enter a crucial phase. Under plans to protect the economy, three pilot clusters will be set up to enable collaboration between businesses, research centres, and third-level institutions, in particular high-potential and high-growth sectors. Critical skills review A critical skills review will also be completed by the end of the year to inform how to prioritise skills-based migration for those sectors facing particular shortages, including the tourism industry. The Taoiseach has met with most of the multinationals based here in recent months, and when he was last in US, the key message was the EU, and as part of that Ireland, is falling behind on AI because of over-regulation instead of innovation. A key focus will now be on investing in AI, speeding up policymaking, and reducing red tape to give Ireland an edge. The meeting, which will be attended by IDA Ireland and Enterprise Ireland, will include a presentation by Frances Ruane, chair of the National Competitiveness and Productivity Council on the recommendations in the forthcoming Ireland's Competitiveness Challenge report. 'Major investment needed' Mr Burke has stressed the importance of actions that must be taken now to improve the country's competitive offering and retain jobs. He will tell colleagues that a major investment is needed to ensure we do not lose out on jobs of the future and action must to be taken now on six key areas to attract foreign direct investment. Mr Harris will tell the summit the focus must be on working constructively to protect Irish jobs and investment and shield Irish businesses and consumers from any negative impacts. A competitiveness action plan, expected to be finalised in the coming weeks, will help insulate businesses from some of the global trade uncertainty. With the clock ticking to Donald Trump's July 9 deadline, Mr Burke struck a cautionary note on Sunday, saying the 'best case' scenario is now agreeing an outline framework that would then create a pathway to further negotiation between the US and EU. 'Obviously, there are number of areas that the EU are looking for, zero for zero carve-outs and favoured nation status,' he told RTÉ's This Week. 'These centre on aviation, life science, semiconductors, and spirits,' Mr Burke said.
