Government tax receipts surged almost 23 per cent to a record €108 billion last year, beating its own forecasts, amid a higher-than-expected Apple payment and other windfall corporate taxes.
The year-end exchequer returns, published by the Department of Finance on Monday, showed total corporation tax receipts soared 64 per cent to €39.1 billion in 2024. This was driven by almost €11 billion flowing into the State coffers from Apple, covering most of the money owed as a result of a high-profile European court ruling last September.
The Apple money transferred was almost €3 billion higher than what the Government projected when it unveiled its budget in October. Stripping this out, underlying corporate tax rose 18 per cent to about €28.1 million. While much of this was unlikely be paid every year, it came in some €1.4 billion below forecast.
Income tax, traditionally by far the biggest earner for the exchequer, rose by 6.6 per cent last year to €35.1 billion, coming in broadly in line with official forecasts. VAT receipts rose 7.3 per cent last year to €21.8 billion, while excise duties advanced 11.8 per cent to €6.28 billion and other taxes edged 6.9 per cent higher to €5.78 billion.
Total tax receipts beat official forecasts by about 2 per cent.
“The end-year figures are affected by one-off receipts arising from the Court of Justice of the European Union (CJEU) and so it is important to dig below the surface,” said Minister for Finance Jack Chambers. “When we do this, we see solid growth in income tax and VAT receipts last year; these trends demonstrate the underlying strength of our economy.”
While the Minister said that there economic risks on the horizon, he said that using the Apple tax boost to invest in infrastructure like energy, water, transport and housing is important to get “the basics right”.
The Government recorded an exchequer surplus of €12.8 billion, which was €1.2 billion more than forecast at the time of Budget 2025 and compared to a €1.2 billion surplus posted in 2023.
The strong figures come as Fianna Fáil and Fine Gael negotiating teams ratcheted up talks on Monday on forming a new coalition. Both pledged ahead of the election to accelerate spending on housing and infrastructure on expectations that public finances will remain in rude health.
The Apple money stems from a European Court of Justice ruling in September that the iPhone marker must pay billions of euros of back taxes and interest to the Republic. An escrow account, set up in 2018 as Ireland and Apple continued a legal battle with the European Commission over whether the money was owed, held €14 billion at the time of the final ruling.
The extent of Apple cash transfers in 2024 suggests that about €3 billion will need to come off the Department of Finance’s tax receipts forecast for this year, of €105.4 billion.
While the exchequer is officially projected to record a €7.89 billion surplus this year, it could fall to €3.05 billion if corporate tax receipts stall. The central fund could slide into deficit of €1.11 billion in a scenario where such taxes declined, according Department figures.
Department staff see a €31.4 billion exchequer deficit by 2030 – and a €14.9 billion deficit for the general government, a broader measure that takes in other state agencies and bodies – in an adverse scenario where corporate tax receipts retreat to 2020 levels.
Minister Chambers said in an interview published over the weekend that the incoming administration of Donald Trump in the US poses risks for trade and inward investment into the Republic in the coming years – at a time when demand from key markets in Europe is stagnating. His officials see growth in Irish gross national income-star (GNI*), a measure of the domestic economy, slowing to 2.7 per cent in 2025 from about 5 per cent recorded in each of the past two years.
“With the potential for significant US tax reform under president Trump, it is increasingly difficult to predict the trajectory of corporation tax receipts here,” said Peter Vale, a tax partner with Grant Thornton. “While there is hope that the scale of any US tax reform will fall short of election promises, a gradual decline in our corporation tax receipts remains a possibility.”
Gross voted expenditure last year amounted to €103.7 billion, which was €9 billion (ahead of 2023 but €600 million lower than expected.
Non-voted current expenditure, excluding the interest bill on government debt, fell by 4.6 per cent to €3.9 billion. Non-voted capital spending rose by 9.8 per cent to €5.8 billion.
Interest costs on debt were about €3.1 billion, down 5.2 per cent on the year.
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