CORPORATION TAX RECEIPTS of €2.8 billion were collected in August, a 33% jump on the same month last year.

The latest exchequer returns, published by the Department of Finance, show that corporate taxes are up 8.3% on last year to €17.8 billion. 

This is partly down to a new 15% rate of tax for multinationals with a turnover of more than €750 million. This resulted in an additional €1.2 billion in corporation tax payments to the end of August.  

Total tax revenues collected so far this year amount to €66.3 billion, up by €3.9 billion on last year.

Income tax receipts amounted to €25 billion, up by €1.8 billion, while VAT receipts increased by €1.1 billion to €16.3 billion. 

Total government spending to end of August totalled €83.6 billion.

An Exchequer deficit of €1.8 billion was recorded to end-August. At the same time last year, the government recorded a surplus of €3.2 billion.

Reacting to the figures, the Irish Fiscal Advisory Council (Ifac) pointed to a “pattern of overspends”, saying the government “continues to rely heavily on risky corporation taxes”. 

3/4 Corporation tax receipts rose further in August — a key month for multinational payments. Revenues look set to exceed forecasts for 2026. pic.twitter.com/IZk7wLumSM

— Irish Fiscal Advisory Council (@fiscalcouncil) September 3, 2026

“August’s update shows taxes growing strongly. But spending is also rising faster than planned, and Department of Health overruns are mounting,” the fiscal watchdog said. 

In its now-annual pre-budget warning last month, Ifac said Ireland would be better off creating its own fiscal rules to rein in spending instead of relying on the EU’s framework.

It said the EU rules – which use GDP to determine spending, debt and deficit limits – are “not appropriate” for Ireland because of the country’s heavy reliance on risky corporate tax receipts.

Essentially, assessing the health of the public finances using GDP does not make sense because so much revenue comes from a small number of multinational corporations, which gives a skewed picture of the “real” economy.

Tánaiste and Minister for Finance Simon Harris said the focus on Budget 2027 is “getting the balance right”. 

“This Government will deliver a Budget that makes work pay, supports business and continues to invest in our public services and infrastructure,” he said.

“At the same time, we will ensure that Budget 2027 keeps our public finances on a sustainable path by continuing to build fiscal buffers and investing in the Future Ireland Fund.”