Workers boosted State coffers in the first four months of the year paying almost €12 billion income tax, aided by April bonuses, official figures show.
Exchequer returns, detailing Government’s income and spending, show the State collected €28.6 billion in tax from the start of the year to the end of April.
Excluding a €1.72 billion payment from tech giant Apple following last year’s European court ruling, the tax take was €26.8 billion during that period, €2.1 billion ahead of the first four months of last year.
The EU Court of Justice ordered Apple to pay the State €13 billion in back taxes in a competition law ruling last September.
Government accounts treat those payments from the multinational as separate from other taxes.
Workers paid €11.7 billion in the period to end of April, €500 million more than in the first four months of last year, the figures show.
Olivia Lynch, head of tax markets at accountants KPMG, said the growth reflected “a buoyant Irish labour market operating at full employment”.
Companies paid €3.2 billion corporation tax on their profits in the first four months of the year, which was €500 million more than during the same period in 2024.
Including Apple’s once-off contribution, the State collected €4.9 billion in corporate taxes up to the end of April, €2.2 billion more than in the first four months of last year.
April’s corporation tax take halved to €100 million against the same month last year. A Department of Finance statement noted that “April is not a key month for corporation tax”.
Income tax payments in April rose €200 million on the same month last year to €3.5 billion.
Ms Lynch pointed out that this was the “top tax performer” last month.
Peter Vale, tax partner at accountants Grant Thornton, pointed out that companies generally pay bonuses in April, adding to the month’s income tax take.
He added that the returns indicate little pressure “so far” on workers’ pay, particularly at senior levels.
However, Mr Vale cautioned that employers would have determined many of the bonuses they paid last month before the global trade downturn.
He observed that corporation taxes had yet to show any impact from tariffs imposed last month by US president, Donal Trump, which sparked turmoil in trade and capital markets.
“The figures for May and June will make for interesting reading in this regard to ascertain whether any negative trends are beginning to emerge,” Mr Vale added.
Ms Lynch also argued that May would provide a better gauge of any impact on the economy.
“The coming months will be crucial to see whether Irish tax yields remain stable amidst the global economic uncertainty,” she predicted.
April was a “non-VAT” month for businesses, but the sales tax yielded €300 million, €38 million on April 2024.
VAT for the first four months of this year was up €400 million at €7.9 billion, according to the Exchequer returns.
Motorists, smokers and drinkers paid €600 million in excise up to the end of last month, €100 million more than in the same period in 2024.
Government spent €500 million more than it collected from taxes and other revenue sources over the period to the end of April, Tuesday’s figures confirmed.
However, this was €700 million better than the €1.2 billion shortfall it recorded at the same time last year.
Including the once-off Apple tax gain, the Exchequer ended up with a €2.8 billion surplus at the end of April.
Government has spent €35.8 billion so far this year. Spending by its individual departments accounted for €33 billion of that total, which was €3 billion more than during the same period last year.
