Corporate Tax

Booming corporate tax revenues grossed € 1.5 billion final month

The government continues to attract a bounty from booming multinational corporations as it raised nearly a billion euros more than expected in corporate tax revenue in the past month alone.

The latest tax returns show that nearly $ 1.5 billion in October

However, corporate tax revenues continue to evolve during the pandemic.

Corporates’ income in the first 10 months of the year was just over EUR 9.5 billion – and thus EUR 2 billion higher than expected.

This means that corporate income tax revenues reached almost 12 billion euros. In total, the tax authorities received 5 billion euros in tax revenues in October, of which 30% came from corporate income tax.

Multinational corporations make up the lion’s share of all corporate tax revenue, and profits from local pharmaceutical and computer giants boomed during the pandemic.

The government bounty comes as Ireland and the multinationals have come under an unprecedented international focus this year.

After fighting rearguard action, the government signed the global deal last month, which means Ireland will raise the tax levied on multinationals to 15%, up from the 12.5% ​​rate under the existing long-standing regime.

“Corporate tax revenues in October were higher than expected, which once again illustrates the inherent unpredictability and volatility of this source of income,” Treasury Secretary Paschal Donohoe said of the uncertainty surrounding its impact on Ireland, “he said.

Income tax and expenses

The other major tax sources performed reasonably well. Income taxes brought in over 2.2 billion euros in October, which was 330 million euros more than expected, said the Ministry of Finance. In the first 10 months, income from income tax amounted to 20.7 billion euros.

Excise taxes amounted to 546 million euros per month and 4.6 billion euros for the full 10 months, 320 million euros more than in the same period last year.

In a payment-free month, the sales tax receipts brought in only 169 million euros. In the first 10 months, sales tax revenues amounted to 12.6 billion euros.

On the expenditure side, the expenditures for the first 10 months amounted to 67.5 billion euros, almost 2.5 billion euros less than expected. Spending Secretary Michael McGrath said spending was € 2 billion more than last year.

Peter Vale, tax partner at Grant Thornton Ireland, said the October returns were “more good news for the government”.

“Overall, the particularly strong October numbers indicate tax revenues of nearly € 10 billion for the full year before 2020 revenues, which would be a remarkable result,” said Vale.

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