Record corporation tax take in 2018

Record corporation tax take in 2018

The Exchequer is 20% ahead of its target for corporation tax revenues in 2018, having taken a record €9.4 billion so far this year; a figure which could see the government run a budget surplus for the first time in more than a decade.

November’s corporation tax take was a near-record €2.7 billion, recouping €500 million more than anticipated.

It’s an impressive haul when you consider that the corporation tax take for the first 11 months of 2017 was a then-record €8.2 billion.

The unexpected windfall this year is expected to push the government’s finances into the black two years ahead of schedule. The last time this occurred was in 2007 when a budget surplus of €570 million was yielded, followed by a €13 billion deficit in 2008 due to the global recession.

Corporation tax receipts in Ireland have doubled in the last three years thanks largely to a significant transfer of multinational assets to Irish shores following a crackdown on global tax avoidance and improved corporate profitability as a whole.

The finance ministry also attributed the increase in corporation tax revenues to technical amendments in global accounting rules relating to the allocation and timing of corporation tax receipts.

A spokesperson for the Department of Finance said: “November is the largest corporation tax collection month of the year and receipts were once again very strong, reflecting, in part, higher levels of corporate profitability in the economy.”

It should also be said that the strict financial penalties enforced by the Revenue is encouraging limited companies throughout Ireland to keep up with their corporation tax liabilities.

Penalties for late filing, as well as interest charged on overdue tax are acting as effective deterrents.

If you’re unsure whether you’re liable for corporation tax, or how to calculate how much corporation tax is payable based on your company’s profits, your local TaxAssist Accountant can help.

They can assist with the preparation of company accounts, tax returns and tax computations to ensure you only pay the corporation tax you owe and not a cent more.

To arrange a free initial consultation with your nearest TaxAssist Accountant, call us today on 1890 98 76 09 or drop us a line using our online enquiry form.

Date published 17 Dec 2018 | Last updated 17 Dec 2018