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Corporation tax has surged to account for more than 25% of Ireland’s total tax revenue, driven largely by large US multinationals, according to the Irish Fiscal Advisory Council.
The council highlighted that about three-quarters of corporation tax receipts come from major US tech and pharmaceutical companies, leaving Ireland’s public finances highly sensitive to changes in US policy. While recent US tariffs have yet to directly affect the biggest payers, future revenues remain uncertain.
Brian Cronin, author of the report, noted that prior US policy changes “may have temporarily boosted corporation tax receipts,” but ongoing initiatives to encourage domestic manufacturing and reduce drug prices could weigh on Ireland’s collections.
On the other hand, strong global demand for Ireland-produced weight-loss and diabetes medications and rising profits in the tech sector, fueled by artificial intelligence adoption, could continue to bolster tax revenues. Additionally, the introduction of a minimum 15% tax rate for large companies from mid-2026 is expected to further increase receipts.
The council cautioned that tighter regulation of technology firms and potential US tariffs on pharmaceuticals could reduce Ireland’s corporation tax base, underscoring the country’s vulnerability to external policy shifts.
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