Padraic Halpin

DUBLIN (Reuters – Ireland collected 9.4% of its total tax, which is 5.4 billion Euros ($6 Billion), higher than anticipated in the first 11 month after it received a record corporate tax amount in November. The period has been traditionally one of the strongest.

Even though the economy was locked down for much of its first half, tax revenue proved to be extremely resilient in the face of the COVID-19 pandemic.

According to the ministry of finance, 1.5 billion Euros more was received than what it had planned for in its budget last month.

The country also received 4 billion euros in corporate taxes, which is more than the expected 3.2 billion. This puts Ireland on track for another record-breaking year with corporate receipts accounting for over one fifth of all tax revenue.

This also means that November corporate receipts were higher than their annual corporate tax intake ten years back, which was 3.8 billion euros.

Global corporate tax reforms may slow down the rapid growth of a sector dominated by multinationals. However, the target was 26% higher in the first 11 months with 13.6 billion euro.

Paschal Donohoe, Finance Minister, stated that the recovery reflected the strong performance of Ireland’s technology sector in the aftermath of the pandemic. He also said that receipts from all sectors were a positive sign of Ireland’s economic recovery.

After a record month, both income and VAT received 7.2% more than expected year-to-date at November’s end.

Spending 3.4% less than forecast led to a lower deficit at 4.9 billion euro on a 12-month basis.

According to the government’s last month forecast, it will have a budget deficit in 2021 of 5.9% of its modified gross national income. That is down from 8.8%.

Ireland’s fiscal watchdog had predicted earlier this week that Ireland’s deficit would drop by the end of the year. However, Donohoe informed Reuters Wednesday that December is too uncertain due to the Omicron COVID-19 variation.

($1 = 0.8837 euros)