Exchequer Returns: Fall in corporation tax drags down August tax receipts by over 17%
The Department of Finance cited an 'exceptionally strong August return' in 2024 as the reason for the significant decline in corporation tax receipts last month. Picture: Stephen Collins /Collins Photos
Corporation tax receipts fell by nearly 43% last month with the Department of Finance saying the reason for the drop-off is that it is being compared to an “exceptionally strong August return” in 2024.
According to the latest Exchequer returns, the Exchequer took in close to €6.2bn in tax receipts during August - down 17.2% from €7.4bn taken in during the same month last year. This was largely due to a €1.6bn drop in corporation tax receipts to €2.1bn.
The Department of Finance said this reflects an “exceptionally strong August return last year”.
The decline in corporate tax receipts last month were partially offset by increasing income tax receipts which stood at €2.9bn - up €300m.
In the year to the end of August, the Exchequer has taken in gross revenue of €80.6bn, an increase of €7.7bn compared to August 2024. Total tax revenue for this period stood at €64.1bn - up €4.4bn year-on-year. Income tax receipts accounted for €23.2bn, an increase of €1bn.
Total corporation tax receipts so far this year stand at €18.2bn, up €1.9bn. However, this falls to €16.4bn when the proceeds from the Apple tax case in September last year are excluded.
August is not a Vat-due month with receipts of €400m taken in during the month. Cumulative receipts of €15.2bn have been taken in so far this year, €700m ahead of 2024.
Excise duty receipts of €500m were flat in August last year. So far this year, excise receipts amounted to €4.2bn.
Stamp duty receipts have totalled €1.4bn so far this year, up €169m, with capital gains tax receipts up €159m to €551m. Capital acquisitions tax receipts of €339m are up by €132m.
Motor tax receipts and customs receipts stood at €652m and €398m, respectively.
Non-tax revenue and capital resources for the year stood at €4.7bn, up by €2.8bn. Appropriations-in-aid of €11.8bn brought total other revenue to €16.5bn.
In the year to the end of August, expenditure reached €77.4bn of which gross voted expenditure stood at €68.6bn, which was €5.0bn ahead of the same period last year. Non-voted expenditure accounted for €8.8bn, up by €3.4bn.
This reflects the transfer of €3bn to the Future Ireland Fund and Infrastructure, Climate and Nature Fund earlier this year.
This means, during the first eight months of the year, the Exchequer has recorded a surplus of €3.2bn, compared to a surplus of €3.8bn during the same period last year.
However, when the revenue generated from the Apple tax case ruling is excluded, an underlying Exchequer deficit of €100m was recorded, a decrease of €3.9bn on the same period last year.
Debt servicing cost to the Exchequer was €2.5bn as of the end of August, down €300m year-on-year.
