DUBLIN, Oct 3 (Reuters) – Ireland expects to collect 34 billion euros in corporate tax next year, up substantially from the 28 billion euros forecast earlier this year, Finance Minister Paschal Donohoe said on Friday.
Ireland has collected record levels of tax each year since 2021, primarily due to huge increases in corporate receipts paid mainly by a small number of foreign multinationals and which now make up almost a third of all receipts.
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Dublin had anticipated that its corporate tax revenues would take a hit from 2026 as a result of global tax reforms agreed in 2021, but Donohoe said that would now not happen next year due to one pillar of the deal not being implemented.
He also cited continued strong economic performance for the increase from a forecast 32 billion euros this year, which was also revised up on Friday from a prior 31 billion euros.
Corporate tax receipts so far this year were 4.5% more than the finance ministry had expected, while growth rates so far this year of 4% in income tax and 4.8% in VAT were slightly lower than forecast, the finance ministry said.
Donohoe also said there would not be a repeat of recent cuts to income tax rates in Tuesday’s expansionary budget for 2026, with the tax package instead focused on jobs and investment.
Ireland hikes corporate tax forecast on stalled global tax deal
