August corporation tax declines, sustained spending in infrastructure and public services – Ministers Donohoe & Chambers
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From: Department of Finance; Department of Public Expenditure, Infrastructure, Public Service Reform and Digitalisation
- Published on: 3 September 2025
- Last updated on: 22 September 2025
- today’s Exchequer returns show that tax receipts to end-August 2025 were up by €4.4 billion (7.3 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 2024 (€1.7 billion) are excluded, tax revenues amounted to €62.4 billion, up by €2.6 billion (4.4 per cent);
- income tax receipts in the period of €23.2 billion are up on last year by €1 billion (4.7 per cent);
- VAT receipts of €15.2 billion were up by €0.7 billion (4.8 per cent);
- corporation tax receipts excluding CJEU revenues of €16.4 billion are up by €0.2 billion (1.1 per cent);
- Total gross voted expenditure to end-August amounted to €68.6 billion, €5 billion (7.8 per cent) ahead of the same period last year and €0.5 billion (0.7%) ahead of profile;
- a headline Exchequer surplus of €3.2 billion was recorded to end-August. This compares to a surplus of €3.8 billion in the same period last year, a decline of €0.6 billion;
- excluding CJEU receipts, an underlying Exchequer deficit of €0.1 billion was recorded in August, a decline of €3.9 billion on last year
Tax receipts of €64.1 billion were collected to end-August, up by €4.4 billion (7.3 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 €62.4 billion, a €2.6 billion (4.4 per cent) increase on last year.
Income tax receipts in August of €2.9 billion were up by €0.3 billion (10.6 per cent) on August last year. On a cumulative basis, receipts of €23.2 billion are up on last year by €1 billion (4.7 per cent).
August is a not VAT-due month, with receipts of €0.4 billion collected. Cumulative VAT receipts of €15.2 billion now stand €0.7 billion (4.8 per cent) up on 2024.
Corporation tax receipts of €2.1 billion were collected in August, down on the same month last year by €1.6 billion. This reflects a ‘base effect’, whereby August 2024 receipts were exceptionally high. On a cumulative basis, and excluding receipts arising from the CJEU ruling, corporation tax receipts of €16.4 billion were €0.2 billion (1.1 per cent) ahead of the same period last year.
Non-tax revenue to end-August was €2.4 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 in in the period amounted to €68.6 billion, up by €5 billion (7.8 per cent) on last year and €0.5 billion (0.7 per cent) ahead of profile.
At a headline level, an Exchequer surplus of €3.2 billion was recorded to end-August. This compares to a surplus of €3.8 billion last year, a decline of €0.6 billion. Excluding the once-off receipts arising from the CJEU ruling, there was a deficit of €0.1 billion, a decline of €3.9 billion on last year.
The Minister for Finance Paschal Donohoe said:
“Today’s figures have provided a reminder of the vulnerability in our corporation tax base, with a steep fall this month – while this had been anticipated after a very strong August last year, corporation tax is now only marginally ahead of 2024 (when once-off CJEU receipts are excluded).
"Other revenue streams, particularly income tax and VAT receipts, have been performing steadily and are broadly in line with expectations for this point in the year, reflecting the underlying strength of our economy."
The Minister for Public Expenditure, Public Service Reform and Digitalisation, Jack Chambers said:
“The Exchequer return figures for August show expenditure of €68.6 billion. Spending has increased by 7.8% on this time last year. The figures released today show that expenditure is ahead of the plans set out by departments, but overall, this remains a variance of less than 1%. Expenditure to this point in the year has supported continued investment in our public services and infrastructure and is delivering on key government priorities including increased weekly Social Welfare payments and investment in our health services.
“Capital spending continues to grow strongly compared to last year, with an overall increase of 21.8%, in line with this government’s ongoing commitment to improving infrastructure across the country. One of the clearest examples is in housing, where capital investment has increased by 30% over 2024 levels. We need to ensure the momentum to tackle the housing challenge is sustained and that we deliver long-term solutions. Work is ongoing in my department, and through the Accelerating Infrastructure Taskforce, to identify barriers to infrastructure delivery and actions to address these. A final report and accompanying action plan is scheduled for completion this Autumn.
“Looking ahead, the Medium Term Expenditure Framework – which will be soon be published by my department – will guide public spending from 2026 to 2030. It will set out a sustainable path for expenditure growth, ensuring Ireland’s public finances remain resilient and responsive to emerging challenges. As part of the Budget Estimates process, my officials and I will continue to engage with departments and their Ministers on departmental allocations, which will be agreed in the coming weeks as part of Budget 2026.”