In its recently published ‘Beyond the Budget Series', the Irish Fiscal Advisory Council (IFAC) has highlighted concerns that Ireland’s corporation tax receipts have become more concentrated with the top ten highest paying corporate group accounting for almost 60 percent of total corporation tax receipt in 2024. Of this cohort, the top three corporate groups accounted for 46 percent of all corporation tax revenues in 2024.
In addition, data shows that since 2022, the corporation tax paid by two of the biggest payers, both in the tech sector, has increased substantially resulting in greater concentration and greater uncertainty.
As corporation tax revenues become more concentrated, they also become more volatile. IFAC warns this means Ireland’s tax base is increasingly exposed to the performance of a small number of firms and the decisions they make. The relevant group structures are highly sensitive to global developments and further shifts in US tax, trade, or industrial policy could significantly influence their location decisions. As a result, future receipts are more uncertain and could end up significantly above or below current levels.
However, IFAC notes that the 15 percent minimum effective tax rate for large multinationals will boost corporation tax revenues from 2026 with a previous analysis suggesting the measure could raise a further €5 billion in receipts.
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