Irish corporate tax falls sharply as one-off boost falls away

DUBLIN, June 5 (Reuters) - Growth in Ireland's underlying tax revenue for the first five months of the year slowed to 3.6% after a sharp dip in corporate tax receipts in May that the finance ministry said was due to one-off factors from a year ago falling away.

Ireland has collected record levels of tax each year since 2021, mainly due to a surge in corporate receipts, but these were 9.4% lower year-to-date at the end of May, excluding proceeds from a ruling last year related to Apple AAPL.O back taxes.

Corporate tax receipts in May, one of the first major payment months of the year, fell to 2.5 billion euros ($2.86 billion) from 3.6 billion euros a year ago, the data from the finance ministry showed on Thursday.

Ireland collected between 2.4 billion euros and 2.9 billion euros in the corresponding month in 2021, 2022 and 2023.

The finance ministry forecasts corporate receipts, excluding the Apple proceeds, to post a rare annual decline this year and fall back by 2%. Growth elsewhere is expected to push overall receipts 3% higher on an underlying basis, it said last month.

Growth of 4.5% in income tax receipts and 5.5% in VAT so far this year kept that forecast on track at the end of May.

The corporate tax haul, underpinned mainly by a small number of foreign multinational firms, has handed Ireland the healthiest public finances in Europe.

An underlying exchequer surplus of 0.7 billion euros in May was broadly similar to a year ago.

($1 = 0.8728 euros)