Last week the Irish Fiscal Advisory Council (IFAC) published an analytical note outlining the potential impact of US tariffs and other policy changes on Irish corporation tax receipts. The paper outlines that corporation tax now represents well over a quarter of Ireland’s total tax receipts, with approximately three-quarters of this revenue coming from large US multinationals. One of the key findings of the paper is that most of Ireland’s largest corporation tax contributors have not yet been directly affected by tariffs.
The paper notes that the technology and manufacturing (primarily pharmaceuticals) sectors account for about 87 percent of the corporation tax paid by major US owned firms in Ireland. The analysis also finds that short term corporation tax receipts could be even higher, as one major pharmaceutical company accelerated exports to the US ahead of anticipated tariffs.
In the paper, IFAC outlines that corporation tax revenues have become increasingly uncertain, with potential for significant fluctuations in the coming years. The note describes that while tech and pharma profits appear strong for now, tax receipts are becoming more concentrated in these sectors and this represents a risk heightened by possible future changes in US and international tax, trade, and industrial policy.
LOADING...