The Government amassed a record €116 billion in tax revenue last year, an increase of 50 per cent on the total collected in 2020.
Central Statistics Office (CSO) figures show more than half (51 per cent) came from direct taxes, which included income tax amounting to €33 billion and corporation tax of almost €24 billion.
The CSO noted that corporation tax revenues have more than doubled in the four years since 2019.
“At the beginning of the series, in 1995, corporation tax revenues accounted for 8 per cent of total tax revenues. This compares with 21 per cent in 2023 and much of this increase occurred in more recent years,” the CSO said.
The Department of Finance is projecting another record year for business tax with receipts expected to hit €29 billion in 2024, up from the midyear estimate of €24.5 billion, which it linked to a rebound in exports and “the associated increase in corporate profitability”.
The corporate tax bubble excludes the €14 billion plus due to flow in as a result of the Apple tax case. Outgoing Minister for Finance Jack Chambers signalled last month that he expected about €8 billion of the €14.1 billion windfall to be received this year with the remainder coming in 2025.
The CSO noted that income tax revenues accounted for 30 per cent of total tax revenues in 1995. “While the share of income taxes decreased during 2000-2010 it returned to approximately 30 per cent of total tax revenue from 2015 onwards,” it said.
The CSO data show taxes on products accounted for 26 per cent of total tax revenue, including VAT at €20 billion and excise duties at €7 billion. There was also €21 billion received from PRSI and other social contributions last year.
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