Corporate profits surge nearly 20% driving huge tax haul 

Gross corporate profits in 2022 - which includes both Irish-owned and foreign-owned entities - came to €297.5bn, an 18.6% increase compared to 2021

Corporate profits surged by nearly 20% during 2022 driven by large increases in sectors dominated by multinational companies such as industry and technology, new figures from the Central Statistics Office (CSO) show.

The increasing profits being made by companies based in Ireland is leading to the boom in corporation tax receipts which is expected to continue into the near future. The Government is now expecting to run surpluses over the coming years based largely on the tax take from these corporations.

The Government is projecting to take in €24.3bn in corporation tax this year and €25.1bn next year.

However, the Government has also warned that this high level of corporation tax receipts cannot be relied upon in the future as it is seen as excess by the Revenue Commissioners.

According to the CSO, gross corporate profits in 2022 - which includes both Irish-owned and foreign-owned entities - came to €297.5bn, an 18.6% increase on 2021. Of that, €79.8bn came in the final three months which is up 30% from the same period in 2021.

The data shows that gross corporate profits have been on a steady upward trajectory over the last five years. In 2017, corporate profits stood at €154.6bn which means it has grown by over 92% since then.

However, according to Conor Prescott, national accounts income statistician with the CSO, foreign-owned corporations are growing at a faster pace than Irish-owned companies with €261bn in profits made in 2022 “representing a 98% increase over 2017”.

Profits at Irish-owned companies increased by 61% during the same period.

The area with the largest share of the profit accumulated during 2022 was the agriculture, industry, and construction sector taking home €162.7bn - up from the €139bn recorded profit in 2021. This sector includes the pharmaceutical sector and is dominated by foreign-owned companies operating in Ireland which made 95% of that profit.

The information and communications sector has the next highest share of the total profit and is also dominated by multinationals, mostly technology companies.

In 2022, companies in this sector saw a combined profit of €71.9bn - a 17% increase from 2021 - of which over 98% of it was made by foreign-own companies.

Profits in the administrative and support services sector saw an increase of €1.6bn in 2022 to €16.9bn.

Other areas such as the financial and insurance activities sector as well as the wholesale and retail sector saw their profits increase by around €1bn in 2022 compared to 2021.

According to the CSO, these corporate profits represent the income earned by all public and private companies operating in Ireland and are calculated using the same method as gross operating surplus in national accounts.

For 2022, the CSO estimates that the net corporate profits were approximately €186.2bn.