May’s Exchequer returns show a €78 million (1.3 per cent) increase in tax revenues compared to May 2019 due to a €1.2 billion increase in corporation tax receipts. Income tax fell 7.8 per cent year-on-year, or by €137 million. VAT and excise receipts fell by 35 per cent and 36 per cent year-on-year respectively, or nearly €1 billion combined. An Exchequer deficit of over €6.1 billion was recorded to end-May 2020 due to public funding demands in response to the COVID-19 crisis.

The May 2020 corporation tax take comprises of the first instalment of preliminary tax for large companies with a November 2020 year end, the second instalment of preliminary tax for large companies with a June 2020 year end and a final corporation tax payment for companies with an August 2019 year end.

Income tax receipts have been the largest contributor to tax receipts for the last five years, with VAT receipts being the second largest. While corporation tax receipts are holding strong, the fall in VAT receipts impacted the overall tax receipts figure for May.

More details on the May Exchequer returns can be found on the Department of Finance website.