Two companies paying almost 40% of corporation tax, watchdog says

Two tech companies are paying almost 40% of total corporation tax receipts, according to the Irish Fiscal Advisory Council.

Previous research from the Council suggested that three companies accounted for around a third of all corporation tax receipts from 2017 to 2021.

However, its latest research suggests that this reliance has increased with the three companies accounting for almost half (46%) of corporation tax in 2024, equivalent to around 13 billion euro.

Corporation tax receipts almost doubled between 2021 and 2024, even when receipts from the Apple tax judgment are excluded.

The Council said this sharp increase was largely driven by increased payments from the top three payers, all of whom are in the the tech and pharma sectors.

The two largest companies are in the tech sector.

The Council said: “We estimate that together, these two tech companies paid almost 11 billion euro of corporation tax in Ireland in 2024, equivalent to almost 40% of total corporation tax receipts.”

The increased concentration of corporation tax receipts to a small number of companies means the revenue becomes more risky.

Brian Cronin, economist at the Irish Fiscal Advisory Council and author of the corporation tax research, said: “These companies continue to perform strongly, but their profits and the taxes they pay remain subject to significant uncertainty.

“As a result, corporation tax receipts could be substantially higher or lower than current levels in the medium term.”

The three companies continue to perform strongly amid growing demand for their services and goods.

The Council said: “In addition, the 15% minimum effective tax rate for large corporations will lead to increased corporation tax from 2026 onward.

“Previous estimates suggest this higher tax rate could yield an additional five billion euro in corporation tax receipts.”

However, it also noted clear downside risks: “In the tech sector, tighter regulation or new products not selling well could reduce profits.

“In addition, big investments in artificial intelligence may not deliver the high returns anticipated.

“In the pharma sector, efforts to reduce branded drug prices in the US could reduce the profitability of the sector.”