Ireland’s corporate tax revenues are increasingly reliant on a handful of multinational corporations, with just three companies – Apple, Microsoft, and Eli Lilly – accounting for almost half of the total collected in 2024. A report by the Irish Fiscal Advisory Council (Ifac) estimates these three US-based firms paid around €13 billion of the €28.1 billion in corporation tax received that year, representing 46% of the total.
The concentration of tax revenue poses a “significant risk” to the Irish exchequer, according to Ifac. The council’s report highlights the “exceptionally concentrated” nature of Ireland’s corporate tax base, noting that two companies alone were responsible for almost 40% of receipts in 2024. This dependence underscores the vulnerability of the Irish economy to fluctuations in the performance and tax strategies of a limited number of large corporations.
Apple, the iPhone maker, is estimated to have paid approximately €5.8 billion in corporate tax in Ireland during 2024. This figure is in addition to the €14 billion the company paid as a result of its protracted legal battle with the European Commission over its tax arrangements. Microsoft, employing around 6,400 people in Ireland, contributed approximately €4.8 billion in tax, while Eli Lilly, a pharmaceutical company manufacturing ingredients for popular weight-loss drugs like Zepbound and Mounjaro, paid around €2.2 billion.
The shift in the ranking of top corporate taxpayers reflects changing market dynamics. Pfizer, previously in third position, saw its tax contribution decline in 2024 due to a drop in demand for its Covid-19 vaccines and related medicines, ceding its place to Eli Lilly. This illustrates how quickly the composition of Ireland’s corporate tax base can change based on sector-specific performance.
Corporation tax receipts in Ireland have nearly doubled between 2021 and 2024, largely driven by increased payments from these top three payers. However, Ifac cautions that this growth is not necessarily sustainable. The council warns that future revenues could be “substantially higher or lower than current levels,” emphasizing the inherent uncertainty associated with relying on a small number of large taxpayers.
Despite the risks, the outlook for Apple and Microsoft remains relatively positive. Both companies reported double-digit revenue growth in 2025, and market analysts anticipate continued growth into 2026, fueled by strong demand for their products and services, particularly in the area of artificial intelligence. Eli Lilly is also expected to benefit from continued strong sales of its weight-loss and diabetes medications.
The pharmaceutical sector’s contribution to Irish tax revenues is noteworthy. Eli Lilly reportedly shipped approximately $42.3 billion (€36.4 billion) worth of ingredients for its weight-loss drugs from Ireland to the US in the first four months of 2024, strategically timing exports to pre-empt potential tariffs. This highlights the role Ireland plays as a key manufacturing base for globally in-demand pharmaceuticals.
Looking ahead, Ireland is poised to benefit from the implementation of a new global minimum corporate tax rate of 15%, agreed upon as part of an Organisation for Economic Co-operation and Development (OECD) agreement in 2021. This is projected to generate an additional €5 billion in tax receipts for the exchequer. However, Ifac reiterates the underlying risks associated with concentrated tax revenue streams.
“Relying heavily on just two of the world’s biggest tech companies for a substantial stream of corporation tax revenue carries significant risks,” Ifac stated. The council points to potential disruptions such as unsuccessful product launches, leadership changes, shifts in business strategy, or increased regulatory scrutiny as factors that could lead to a sharp decline in profits and, tax revenues.
The Irish Fiscal Advisory Council’s report serves as a stark reminder of the delicate balance Ireland strikes in attracting multinational investment while managing the risks associated with a highly concentrated tax base. The continued performance of Apple, Microsoft, and Eli Lilly will be crucial in determining the future stability of Ireland’s corporate tax revenues.
