10/08/21

IRELAND: Record amount of corporation tax collected last year.

As published on rte.ie, Tuesday 10 August, 2021.

The high proportion of tax revenue coming from corporation tax represents "a significant risk to the public finances," according to a report published by the Department of Finance today.

Last year, corporation tax accounted for 20% of tax revenues compared to an average 12% a decade ago.

€11.8 billion was collected in corporation tax last year - that's the highest amount on record.

It’s also two and a half times greater than the amount collected in 2014.

Ten firms, all multinationals, accounted for just over half of the corporation tax collected in 2020.

Foreign multinationals pay 82% of the corporation tax collected.

The Department’s Annual Taxation Report says the current reforms under negotiation at OECD level could result in Ireland’s corporation tax take being reduced by €2 billion.

However, the report notes it could be higher.

The report also notes that resilience income tax receipts were the man reason that the tax take only declined by 3.5% last year, despite the pandemic.

It was the first decline in tax income in a decade.