Corporate tax receipts surged 25% in key payment month of June
The State has collected record levels of tax each year since 2021, mainly due to huge increases in corporate receipts that the Department of Finance had expected to fall a touch this year – excluding one-off Apple's back taxes – before returning to 2024 levels next year.
Advertisement
Corporate tax receipts fell 30 per cent year-on-year in May, one of the first major payment months of the year.
The Department of Finance put that down to one-off factors, and the renewed growth in June left corporate returns 7.4 per cent higher in the year to date, official data showed on Thursday.
Most large companies pay the bulk of their corporate tax in two payments, one in June and a larger amount in November.
The Republic's huge reliance on the tax paid by a cluster of US technology and pharmaceutical firms has made it especially vulnerable to the tariff and tax plans of US president Donald Trump, who has repeatedly singled out Ireland for "luring away" companies with decades of low corporate tax rates.
Advertisement
Ireland
Tourism tax could help fund 'significant' revitali...
Read More
The €7.4 billion received last month – which was more than Ireland collected in all of 2017 – suggested the exchequer could be in line for another big increase in November.
The corporate tax haul, underpinned mainly by a small number of foreign multinationals, has handed Ireland the healthiest public finances in Europe and allowed it to boost government spending so far in 2025 by 8.2 per cent, 0.7 percentage points more than budgeted for.
Growth of 4.3 per cent in income tax receipts and 5.8 per cent in VAT by the end of June – the other two main tax categories – helped bring the underlying exchequer surplus to €1.2 billion in June.
The Department of Finance expects to end the year with a total budget surplus of 2.6 per cent of national income.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
South Wales Argus
13 minutes ago
- South Wales Argus
Welsh firms hit by global tariff changes, survey finds
Chambers Wales South East, South West and Mid's latest Quarterly Economic Survey for the second quarter of 2025 shows a mixed outlook for exporters, with 41 per cent of businesses reporting stable export sales. However, the survey also points to signs of growth. David Pena, director of international trade at Chambers Wales South East, South West and Mid, said: "It has been an unpredictable period for international trade, with ever-changing tariff decisions and trade talks progressing. "Tariffs can act as a trade barrier to fostering long-term growth, and it is clear that the US' decisions have impacted businesses in Wales whether directly or through supply chains." Nearly a third of businesses said export orders and advanced bookings increased in Q2, up from 25 per cent in Q1. The report highlights the impact of US trade policy, including President Donald Trump's 'Liberation Day' announcement and new tariffs introduced in April. Fifteen per cent of Welsh firms reported being affected by the 10 per cent US tariff on imports, while 23 per cent said their business or supply chain felt the effects of wider global tariffs. Some firms said the tariffs had not impacted trade, but others reported a slowdown in US business, with fewer enquiries and orders. Nearly a quarter said they would reconsider the country of origin for goods to avoid tariffs. The survey also examined business conditions beyond trade. Forty-four per cent of businesses attempted to recruit in the past three months, but two-thirds faced difficulties due to a lack of suitable candidates. Gus Williams, interim CEO of Chambers Wales, said: "Despite a mixed picture in the world of international trade, it is heartening to see the positives in our survey results from increases in export orders to investment plans for training."
Reuters
14 minutes ago
- Reuters
US lets GE restart jet engine shipments to China's COMAC, source says
July 3 (Reuters) - The U.S. told GE Aerospace (GE.N), opens new tab on Thursday that it can restart jet engine shipments to China's COMAC, according to a person familiar with the matter, in a further sign of de-escalating U.S.-Sino trade tensions that included concessions from Beijing over rare earths. The United States this week also lifted restrictions on exports to China for chip design software developers and ethane producers, suggesting trade talks between the two countries are moving forward. License suspensions and new license requirements on the different exports had been issued several weeks ago as part of the ongoing trade war between the world's two biggest economies. GE did not respond to an email request for comment, nor did the Commerce Department, which notified GE it could restart shipments. Licenses for GE Aerospace affect engines sold to China's state-owned aerospace manufacturer COMAC, which wants to compete internationally against dominant plane makers Airbus ( opens new tab and Boeing (BA.N), opens new tab. A spokesperson for the Chinese embassy in Washington did not immediately respond to a request for comment. The restrictions were among the many countermeasures imposed by U.S. President Donald Trump's administration in response to China's export restrictions on rare earths and related magnets in April. Beijing's move on rare earths, part of retaliation against Trump's earlier tariffs this year, has upended supply chains central to automakers, aerospace manufacturers, semiconductor companies and military contractors. The issue threatened to scupper a bilateral trade deal. The license suspensions lifted for GE affect LEAP-1C engines to COMAC for its C919 single-aisle aircraft, and GE's CF34 engine for COMAC's C909 regional jet, according to the person familiar, who declined to be identified because they were not authorized to speak publicly. The LEAP 1-C engines are the product of a joint venture between GE Aerospace and France's Safran ( opens new tab. The C919 is made in China but many of its components come from overseas. At least one other aerospace company also had its license suspensions for China lifted on Thursday, according to another person, who declined to identify the company. Honeywell (HON.O), opens new tab Aerospace has supplied COMAC's C919, too, providing an auxiliary power system, wheels and brakes, flight control package, and navigation package. Honeywell did not return a request for comment. Collins Aerospace, a subsidiary of RTX (RTX.N), opens new tab, which also supplies components for COMAC, declined to comment on the status of its licenses. In recent weeks, the U.S. also suspended licenses for nuclear equipment suppliers to sell to China's power plants. U.S. nuclear equipment suppliers include Westinghouse and Emerson (EMR.N), opens new tab.
The Independent
15 minutes ago
- The Independent
Ministers reveal plan to nearly double onshore wind across England by 2030
The Government has unveiled its plan to almost double onshore wind across England by 2030. Ministers want to expand the country's onshore wind capacity from 14.8GW to 27-29GW by the end of the decade. It comes as part of wider Government ambitions to transition towards a clean power system by 2030, with the hope of boosting economic growth, creating jobs, reducing bills, decarbonising the grid and strengthening energy security. Last year, Labour axed the de facto ban on building onshore wind farms introduced by the Conservatives under David Cameron. The Government's move put onshore wind on an equal planning footing to offshore wind and nuclear, paving the way for projects to be rolled out faster in the coming years. The Conservatives criticised the strategy, accusing Energy Secretary Ed Miliband of making the country's energy 'unreliable and expensive' through his 'obsession with climate targets'. As part of the plan, the Government set out 40 actions for ministers and industry to take to hit the 2030 onshore wind ambitions. These include planning reforms, building supply chains and skilled workforces, resolving issues over how onshore turbines and aerospace infrastructure can co-exist, repowering old turbines, and exploring plans to expand the clean industry bonus for onshore wind. The Government claimed the strategy will support the creation of up to 45,000 skilled jobs by the end of the decade. In the foreword, Mr Miliband said: 'As one of the cheapest and fastest-to-build sources of power we have, onshore wind will play a critical role in boosting our energy independence with clean power by 2030. 'The reality is that every turbine we build helps protect families, businesses and the public finances from future fossil fuel shocks.' 'The reality is that every turbine we build helps protect families, businesses and the public finances from future fossil fuel shocks.' Matthieu Hue, co-chairman of the Onshore Wind Taskforce and chief executive of EDF Power Solutions UK and Ireland, said: 'This strategy is focusing on overcoming barriers and challenges we face across the industry in the deployment of onshore wind while capturing the major socio-economic benefits it can bring to the environment and to local economies. 'This is a critical part of making Britain a clean energy superpower and delivering energy security.' The Government said communities that host wind farms will benefit from money for community initiatives, such as new football pitches or libraries, or even bill discount schemes. A typical 25MW wind farm paying the industry standard of £5,000 per MW of installed capacity per year could deliver £3.75 million of funding to be redistributed among the community on local initiatives of their choosing over a 30-year operating life, according to the strategy document. In a statement, shadow energy secretary Claire Coutinho said: '(The Energy Secretary) is shutting down the North Sea, concreting our gas wells and he's downgraded our plans for nuclear. 'All this means is that families' energy bills are going to go through the roof, and we'll just end up importing more from coal-powered China. 'The US security services have already warned us that Chinese wind turbines could pose serious risks to our national security, but he won't do a China audit. Ed wants to hit Net Zero targets no matter the cost to the British public.' Elsewhere, the Government recently completed a process to de-risk offshore wind developments, led by the Marine Spatial Prioritisation Programme. It said this will inform the Crown Estate's marine delivery route map on strategic use of the seabed so that more offshore wind farms can be built in a way that considers all marine sectors, including fisheries, and protects the environment. James Robottom, RenewableUK's head of onshore wind delivery, said: 'Overturning the unpopular onshore wind ban, which deprived us of one of the quickest and cheapest technologies to build for a decade, was just the start. 'The hard work to make the most of this great opportunity to grow our economy and strengthen the UK's energy security is now in full swing.' Sue Ferns, senior deputy general secretary of trade union Prospect, said: 'The lost years resulting from the last government's inexplicable ban have resulted in significant workforce and skills-related challenges that urgently need to be addressed, which hopefully they will be in the forthcoming clean energy workforce plan.'
