Ireland Addicted to Giants: Three Companies Pay 46% of Corporate Tax

An analysis conducted by the Irish Fiscal Advisory Council (Ifac) sheds new light on the structure of revenues to the Irish exchequer. In 2024, corporate income tax brought the budget a total of €28.1 billion, of which nearly €13 billion came from just three entities. Although the report does not officially name the companies, it is widely assumed they are the tech giants Apple and Microsoft and the pharmaceutical conglomerate Eli Lilly, known for producing diabetes and obesity drugs. Such high concentration raises justified concerns about the stability of public spending, as a potential decision to shift profits to other tax jurisdictions could trigger an immediate fiscal crisis. The growth in revenues from this trio is striking – until recently, it was estimated they accounted for about one-third of revenues from corporate income tax. The current level of 46% shows that Ireland is becoming increasingly hostage to the market success of a few global players. The Fiscal Council warns that governments should revise their budgetary approach and avoid basing the state's permanent expenditures on these exceptionally volatile and uncertain long-term revenues. The situation is complicated by the fact that for the two largest tech companies, their share of revenues is as high as 40%, making the Irish economy extremely vulnerable to global trends in the IT sector. Since the 1990s, Ireland has built its economic position as a European bastion of low corporate taxes, which attracted hundreds of American investors but also caused tensions with the European Union over fair tax competition. Ifac directors emphasize that Ireland is currently a key element of the group structures of these corporations, but this is not a permanent state. Changes in international tax regulations, such as the global minimum corporate tax, may in the future prompt these companies' boards to optimize their operations outside the island. Experts suggest that surpluses generated by these extraordinary revenues should be directed to special reserve funds, rather than spent on current political needs. Share of Three Companies in CIT Revenues (2024): Other companies: 54, Apple, Microsoft and Eli Lilly: 46 13 billion euros — paid to the Irish state by just three companies Concentration of Tax Revenues in Ireland: Share of 3 largest companies: approx. 33% (previously) → 46% (2024); Value of CIT payments from 3 giants: no data → 13 billion euros; Total CIT revenues: no data → 28.1 billion euros „Ireland is a key part of their group structures. However, it does not have to remain so forever, and future profits of the technology sector are highly uncertain.” — Ifac Report Liberal media emphasize the need to continue supporting innovation and the benefits of being a hub for giants while exercising spending caution. | Conservative media highlight the threat to economic sovereignty and the risk associated with excessive dependence on foreign capital.