AIB has called for a slowdown in current expenditure and a ramp-up in housing investment, following record corporation tax receipts of €33bn paid by companies in 2025.

Overall tax collections were €8.6bn ahead of 2024 according to the figures released by the Department of Finance.

“The exchequer balance (ex-Apple) finished the year at a surplus of €3.8bn. This is an improvement of €2.0bn compared to 2024,” AIB noted in a statement.

The bank highlighted that the increase was largely driven by multinationals, with the largest percentage gains seen in capital gains tax and capital acquisitions tax. Corporation Tax paid in December rose €1bn compared to December 2024, excluding back taxes paid by Apple. Payments from Apple fell to €1.7bn in 2025 from €10.9bn in 2024.

AIB warned that Ireland remains “exposed to downside risks from revenues concentrated among a small number of large multinationals.” However, they noted that robust performance in the pharma and technology sectors could support strong corporation tax growth in the short term.

Accountancy experts emphasised broader fiscal trends. Brendan Murphy, Tax Partner at Baker Tilly Ireland, said: “Interestingly, the biggest year-on-year percentage increases came from the capital taxes of capital gains tax and capital acquisitions tax. This shows an increased activity in 2025 on M&A transactions, property transactions, and succession planning.”

Income tax rose 4.3% to €36.5bn and VAT increased 5.1% to €22.9bn, reflecting continued economic activity and consumer spending. Excise duties were up 3% to €6.4bn. Total expenditure reached €109.4bn, 5.5% higher than 2024.

AIB recommended accelerating capital investment in housing and infrastructure, while restraining the pace of current spending, to ensure fiscal sustainability if windfall revenues were to diminish.

Read the full story on AIB’s recommendations and Ireland’s 2025 tax performance.

Photo credits to olia danilevich/Pexels