CORPORATION TAX RECEIPTS have helped to boost the State’s overall tax take during the first half of this year, increasing by 15.4% when compared to the first six months of 2023.

The latest exchequer report shows that, along with corporation tax receipts, income tax and VAT have also helped to boost the State’s take so far this year, with a total of €44.7 billion received from tax payers during the first six months.

That translates to an increase of more than 9% when compared to the same period last year. 

Today’s report suggests that a 7.3% increase in income tax is consistent with the growth in the employment rate, which current sits at around 75%, according to the last report by the Central Statistics Office.

Corporation tax receipts in the first half of this year are 11% ahead of projections. The majority of the returns from corporation tax, approximately €5.9 billion of the total €12.2 billion collected so far this year, took place in June.

Peter Vale, a Tax Partner at Grant Thornton Ireland said that this boost was largely driven by 2024 profit estimates for many companies being published during last month.

“Thus crucially, positive June returns would suggest further positive returns to come in the key month of November, assuming that profit estimates hold up,” Vale said.

Minister for Finance Jack Chambers had a much more cautious view of the concentrated returns in June however, suggesting that it points to potential for volatility in the figures in the coming months.

Despite that, he added that the corporation tax receipts were “undoubtedly” the “stand-out feature” of this latest report.

A total of €11 billion was collected through VAT during the first six months of this year – representing a 6.2% increase on the same period last year. Receipts in June, a non-VAT-due month, were relatively minor at €0.1 billion. 

While all tax receipts are ahead of projections, so is spending according to Minister for Expenditure Paschal Donohoe. 

“Spending figures to end June reflect the impact of Budget 2024 measures such as enhanced social protection payments and the continued expansion of supports and services in health, housing, education and childcare sectors,” he said today.

Donohoe reminded departments of the importance of staying within budget as he plans to meet with his colleagues in Government to ensure proper management of spending ahead of Budget 2025.