For 2024, the Irish Exchequer recorded a surplus of €12.8 billion, up €11.6 billion from 2023, largely reflecting the transfer of once-off receipts from the Apple case. Total tax receipts of €108 billion were collected in 2024, with the main sources of income broken down as follows: Income tax receipts of €35.1 billion were collected. This figure is €2.2 billion, or 6.6 percent ahead of 2023, reflecting earnings growth and strong employment. Corporation tax receipts of €39.1 billion were collected. This figure is €15.2 billion, or 63.9 percent ahead of the previous year, with the bulk of the increase arising from the Apple case. VAT receipts of €21.8 billion were collected. This figure is €1.5 billion, or 7.3 percent ahead of 2023, reflecting solid consumer spending. Commenting on the figures, Minister for Finance Jack Chambers TD said: “The end-year figures are affected by one-off receipts arising from the Court of Justice of the European Union and so it is important to dig below the surface. When we do this, we see solid growth in income tax and VAT receipts last year; these trends demonstrate the underlying strength of our economy. Looking ahead, there are clearly identifiable risks on the horizon. Navigating through these will require a greater focus on competitiveness and on getting the basics right – especially in areas like energy, water, transport and housing. This is why Government is committed to using the proceeds of the CJEU ruling to expand infrastructure in these critical areas.”

Last week, Revenue published preliminary headline results for 2024, showing record-breaking collections for tax and duties of over €107 billion, with a further €30 billion collected on behalf of other government departments and EU Member States. Income tax, corporation tax and VAT were the largest contributors to the tax take in 2024 at €35.1 billion, €39.1 billion and €21.8 billion respectively, all higher than in 2023. Combatting non-compliance remains a key priority for Revenue, in addition to confronting various tax-avoidance schemes. Some of the highlights of this work during 2024 were as follows: Revenue completed almost 311,000 audit and compliance interventions yielding €591 million. Revenue settled 256 tax avoidance cases yielding €46 million. Revenue secured 20 criminal convictions for serious tax evasion and fraud and published 74 tax settlements in the list of tax defaulters. Revenue also reports that the introduction of real-time payroll reporting has led to a year-on-year increase in the number of PAYE taxpayers managing their own tax affairs. During 2024 Revenue processed nearly 1.4 million income tax returns for PAYE for the 2023 year of assessment. Revenue reports that during the first week of 2025, over 175,000 PAYE taxpayers have already filed a return in respect of the 2024 year of assessment.   Looking ahead to property tax pay and file obligations, Revenue reports that the Residential Zoned Land Tax (RZLT) will come into force in 2025 and will apply to land which is zoned and serviced for residential use. By 31 January 2025, local authorities will publish the revised map for 2025, showing land that is within the scope of RZLT and Revenue’s RZLT registration portal will open at that time. RZLT returns and liabilities will be due in May 2025. Separately, Revenue also published a statistical infographic on the Debt Warehouse Scheme, which is available here and which shows that 94 percent of tax debt is either settled or secured by Phased Payment Arrangements.

Minister for Finance Jack Chambers TD issued a press release on 1 January 2025 reminding taxpayers of several budgetary measures which took effect from that date. These changes relate to the income tax package, the rent tax credit, the benefit-in-kind exemption for installation of BEV (Battery Electric Vehicle) home chargers and the VRT rate change for commercial BEVs. More details of these changes are included in the Press Release.

Revenue has created a new Tax and Duty Manual regarding opinions provided by the High Wealth and Finance Services Division. A new procedure applies whereby all such applications must be submitted on a fully completed Form RTS 1A. The treatment for Financial Services branches remains the same as before. Further information is available in eBrief No.330/24.

Revenue has updated the Tax and Duty Manual regarding the general rule as to the deduction of expenses in employment. New guidance is provided on how to make a claim for employment expenses in respect of actual vouched expenses incurred wholly, exclusively and necessarily in the performance of the duties of employment that are outside the flat rate expense (FRE) allowance regime (paragraph 3). New detailed guidance is also provided on how to make a claim for a FRE allowance together with details of eight employment categories in which the FRE increased with effect from 1 January 2023 (paragraph 7). The manual has also been updated as follows: the circumstances where expenditure on a course is regarded as relevant to the business of an employer for the purpose of deciding whether the cost of such courses is regarded as a taxable benefit when paid for or reimbursed by an employer (paragraph 5), and the deductibility of typical expenses (paragraph 6).

Revenue has updated the Tax and Duty Manual which provides guidelines for VAT registration with information for VAT-registered applicants subsequently applying for postponed accounting via ROS. The Tax and Duty Manual which sets out the guidelines for registration for income tax, corporation tax, relevant contracts tax, employers’ PAYE and certain other tax heads has also been updated to reflect re-naming of the National Employer Helpline to the National Employer Helpdesk.

Revenue has updated the Tax and Duty Manual which outlines the procedures for agents or advisors acting on behalf of taxpayers. As previously advised, Revenue is ending the practice, generally known as the “A2” process, of making repayments of income tax and/or USC to the bank accounts of tax agents, rather than directly to taxpayers. 

Section 599 TCA 1997 provides for relief from capital gains tax (CGT) on the transfer by an individual, who has attained 55 years of age, of certain business or agricultural assets to a “child”, as defined in the section. Revenue has updated the Tax and Duty Manual which provides guidance on section 599 to reflect the Finance Act 2024 amendments. The key changes are: To provide the option to an individual to defer the CGT liability arising on such a disposal made on or after 1 January 2025, as the value of the assets exceeds the €10 million limit on relief granted, To provide for a general anti-avoidance provision in respect of relief granted on transfers of qualifying assets from an individual to a child, and the potential deferral of CGT arising in respect of such transfers, and To provide new and updated examples and information on the operation of the relief, and a restructuring of the content for ease of reference.

Revenue has updated the Tax and Duty Manual which contains an overview of the administration of Pillar Two,  the global minimum level of taxation for multinational enterprise groups and large-scale domestic groups. The updated guidance reflects amendments to Part 4A TCA 1997 contained in Finance Act 2024 as follows: clarification of the meaning of a “designated filing entity” (Section 2.3), clarification that the specified return date of an entity shall be 30 June 2026 where the specified return date of that entity, or group, would otherwise arise before 30 June 2026 (Section 2.8), clarification that the notification date of an entity or group shall be 31 December 2025 where a registration notification date of that entity, or group, arises before 31 December 2025 (Section 3), clarification that GloBE taxes fall due and payable on 30 June 2026 where the specified return date would otherwise arise before 30 June 2026 (Section 13), Table 1 - five year elections provides for the allocation of deferred tax expense election (Section 19.1), and Table 2 - annual elections provides for the simplified calculations safe harbour election (Section 19.2). Revenue has also updated the Tax and Duty Manual which provides guidance in relation to the operation of the Pillar Two rules as follows: widely held investment funds, master-feeder investment funds and umbrella fund/sub fund structures (Section 5.1), the interaction of tax residency and location of a constituent entity in certain circumstances (Section 5.4), the interaction of Part 35A TCA 1997 and Section 111P(4) TCA 1997 (Section 7.2). refundable and marketable transferable tax credits and intra-group financing arrangements (Section 7.2), and identifying the "ownership holder" referred to in Section 111AQ(1) TCA 1997 (Section 11.1). Revenue has advised that this manual will be further updated in due course to reflect the amendments made to Part 4A by Finance Act 2024.

Revenue has updated the Tax and Duty Manual which provides guidance on the mortgage interest tax credit to reflect the extension of the credit to the tax year 2024. The credit for 2024 will be calculated on the increase in interest paid in 2024 over interest paid in 2022, subject to all conditions being met.

Revenue has updated the Tax and Duty Manual regarding the Vacant Homes Tax (VHT) to provide for the increase in the rate of VHT from five times to seven times the basic rate of local Property Tax. The rate change applies for the chargeable period from 1 November 2024 to 31 October 2025 and all future chargeable periods.

Revenue has published updated Capital Acquisitions Tax Manuals to reflect the following Finance Act 2024 amendments: Reporting requirement in relation to gifts in respect of certain loans to include certain low-interest loans with effect from 1 January 2025, and Capital acquisitions tax exemptions to include certain ex-gratia payments made under the cervical check non-disclosure ex-gratia scheme and payments made under phase 1 of the Stardust ex-gratia payment scheme.