Increase in July corporation tax highlights volatility, spending in line with expectations – Ministers Donohoe & Chambers
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From: Department of Finance; Department of Public Expenditure, Infrastructure, Public Service Reform and Digitalisation
- Published on: 6 August 2025
- Last updated on: 6 August 2025
- Today’s Exchequer returns show that tax receipts to end-July were up by €5.6 billion (10.8 per cent) on the same period last year;
- When once-off tax receipts arising from the Court of Justice of the European Union (CJEU) ruling of September 10th (€1.7 billion) are excluded, tax revenues amounted to €56.2 billion, up by €3.9 billion (7.5 per cent);
- Income tax receipts in the period of €20.3 billion are up on last year by €0.8 billion (3.9 per cent);
- VAT receipts of €14.8 billion were up by €0.7 billion (4.8 per cent);
- Corporation tax receipts excluding CJEU revenues of €14.3 billion are up by €1.8 billion (14.1 per cent);
- Total gross voted expenditure to end-July amounted to €60.5 billion, €4.8 billion (8.6 per cent) ahead of the same period last year and €0.3 billion (0.6%) ahead of profile;
- A headline Exchequer surplus of €4.1 billion was recorded to end-July, this compares to a surplus of €3.4 billion in the same period last year, an improvement of €0.7 billion;
- Excluding CJEU receipts an underlying Exchequer surplus of €0.8 billion was recorded in July, a decline of €2.5 billion on last year.
Tax receipts of €58.0 billion were collected to end-July, up by €5.6 billion (10.8 per cent) on the same period of 2024. When once-off tax revenues arising from the CJEU ruling of September 10th 2024 of €1.7 billion are excluded, ‘underlying’ tax revenues stood at €56.2 billion, a €3.9 billion (7.5 per cent) increase on last year.
Income tax receipts in July of €2.9 billion were up by 0.1 billion (1.8 per cent) on July last year. On a cumulative basis, receipts of €20.3 billion are up on last year by €0.8 billion (3.9 per cent).
July is a VAT-due month, with receipts of €3.3 billion collected, €46 million (1.4 per cent) ahead of the same month last year. Cumulative VAT receipts of €14.9 billion now stand €0.7 billion (4.8 per cent) up on 2024.
July is not ordinarily a significant month for corporation tax, but receipts of €1.2 billion were collected, a sharp increase of €0.9 billion on July last year, underlining the exceptional month-to-month volatility in this highly concentrated revenue stream. On a cumulative basis, and excluding receipts arising from the CJEU ruling, corporation tax receipts of €14.3 billion were €1.8 billion (14.1 per cent) ahead of the same period last year.
Non-tax revenue to end-July was €2.3 billion, up by €1.9 billion on the same period last year, largely driven by transfers to the Exchequer arising from the CJEU judgement (mainly interest payments).
Total gross voted expenditure to end-July amounted to €60.5 billion, €4.8 billion (8.6 per cent) ahead of the same period last year and €0.3 billion (0.6%) ahead of profile.
At a headline level, an Exchequer surplus of €4.1 billion was recorded to end-July. This compares to a surplus of €3.4 billion last year, an improvement of €0.7 billion. Excluding the once-off receipts arising from the CJEU ruling, the underlying surplus was €0.8 billion, €2.5 billion behind the same period last year.
The Minister for Finance, Paschal Donohoe T.D. said:
“Today’s figures show that in terms of tax revenue we are, broadly speaking, where we expected to be at this point in the year: the clear exception is corporation tax, which, at least for now, is well ahead of last year.
As I have said many times, we cannot assume these overperformances will continue indefinitely, particularly in the context of a deeply uncertain international trading environment. In June, Government transferred some €3 billion in excess corporation tax was transferred into the Future Ireland Fund and Infrastructure, Climate and Nature Fund, and by the end of this year there will be €16 billion invested to help us prepare for future challenges.”
The Minister for Public Expenditure, Infrastructure, Public Service Reform and Digitalisation, Jack Chambers T.D. said:
“The Exchequer return spending figures for July show gross spending of €60.5 billion. Spending has increased by 8.6% on this time last year and is broadly in line with the amount profiled by departments to be spent at this stage in the year. Expenditure to this point in the year reflects sustained investment in our public services and infrastructure. However, to effectively manage overall expenditure for the reminder of the year, it will be important that key spending departments such health, education and housing remain within the agreed allocation for 2025.
“Of particular note in today’s figures is expenditure on capital infrastructure projects. Departments have spent almost €7.3 billion to end July, an increase of over 21% year on year, underscoring Government commitment to infrastructure delivery to strengthen our economy and society for the longer term. This is reflected in the National Development Plan review recently published by my department, which provides funding certainty for departments for the next 5 years and will support targeted investment in the critical, growth enabling infrastructure projects.
“Looking at expenditure beyond 2025, I will shortly publish a Medium-Term Expenditure Framework, a multi-year public expenditure planning exercise. It will complement the annual budgetary process and will be used to inform future requirements for existing services, and to assess the resource implications of future policy decisions over the period 2025-2030.”