Overall, tax revenues amounted to €47.7bn in the first half of the year, not including the Apple settlement ordered by the European Court of Justice. This was €3bn ahead of the same period last year, or up 6.7pc.
Income tax continues to be a stellar performer, reflecting an economy with virtually full employment. Receipts of €17.4bn under this heading are also up on last year, by €0.7bn.
Vat receipts of €11.6bn are up by €0.6bn, while corporation tax at €13.1bn is over 7pc, or almost €1bn, ahead of where it was at this time in 2024. Its strong performance in June followed a €1.1bn decline in May, and reflects the continuing volatility of these receipts.
Government expenditure continues to keep pace with tax revenues, however. Total gross voted expenditure in the first half of the year amounted to €50.9bn, up by €3.8bn or 8.2pc on last year, and ahead of profile by €0.3bn.
Excluding the Apple tax receipts, an underlying Exchequer surplus of €1.2bn was recorded to the end of June, compared with a surplus of €3.1bn in the first half of last year.
Total tax receipts of €49.5bn were collected in the first six months, which includes the remainder of what Apple had to pay, about €1.7bn. Overall, receipts are up by €4.7bn, or over 10pc, on the first half of last year and ahead of expectations by €0.5bn, with the overshoot largely due to corporation tax receipts.
The Minister for Finance, Paschal Donohoe, said: “June is a key month for tax receipts. The steady performance across most revenue streams in the first half of the year is a positive sign of the strength of our economy as we navigate a deeply uncertain period.
“Corporation tax receipts in June have seen a sharp increase, which follows a sharp decline last month. This serves as a reminder of the extreme volatility in this revenue stream, and of its inherent unsuitability as a basis for permanent spending commitments.
“That is why we have established the Future Ireland Fund and the Infrastructure, Climate and Nature Fund to set aside some of this potentially temporary revenue to help further protect us in the future. Last month, Government transferred some €3bn into the two funds, and when the remaining transfers are made towards the end of this year, there will be around €16bn in the FIF and ICNF.”
Orla Gavin, head of tax at KPMG, said: “The 6.7pc increase in Q2 tax receipts over the same period last year will come as good news to the Government as it deliberates on the scale of the package for Budget 2026 to be announced in the upcoming Summer Economic Statement.”
Brendan Murphy, a tax partner at Baker Tilly Ireland, said the reason why June is important for corporation tax receipts is because those who end their financial year in December face a preliminary tax deadline. “These payments are typically based on the 2024 financial year, which was a strong year for profitability, and this is the likely reason for the positive figures,” he said.
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