Deirdre Barnicle, Partner, McCann FitzGerald: Irish corporation tax receipts for April 2026 were notably strong at €564 million. This comes alongside warning calls from IFAC that reiterate Ireland’s continued critical dependence on corporation tax receipts from a small number of companies.

The Governor of the Central Bank of Ireland flagged his concern that Ireland needs to urgently find additional sources of revenue to alleviate its reliance on US FDI in light of the increasing threats of greater tariffs. This is not yet reflected in the corporation tax receipts mainly on account of the largest MNEs in Ireland (e.g. Eli Lilly, which exports weight loss drugs) entering into bilateral tariff-free trade deals with the US government in return for investments in US manufacturing.

However, the Governor stressed that this is a short-term position, and these receipts should no longer be assumed into the future. There are positive indications, and the corporation tax base does appear to be broadening, with the analysis by the Revenue Commissioners noting that net corporation tax receipts from smaller and medium sized companies grew by 15% in 2025. A lot more will be revealed by the corporation tax receipts in May and June, which will be impacted more closely by the supply chain disruption and energy crisis in the Middle East. Smaller companies are less insulated from the impact of these difficult operating environments, which could serve to quell this positive trend.

This article appeared in the May 2026 edition of the Irish Tax Monitor.