Ireland’s tax authority has published its 2025 annual report, recording net receipts of EUR 106.5 billion and sustained high compliance rates. The publication details reduced outstanding debt, expanded digital and AI capabilities, and forthcoming changes to customs and VAT administration.

RF Report

Irish Revenue published its 2025 Annual Report on 7 May 2026, together with a range of research and statistical papers, outlining total gross receipts of EUR 157 billion for the year.

The figure includes EUR 34.9 billion collected on behalf of other Government Departments, agencies and other EU Member States. Net tax receipts amounted to EUR 106.5 billion.

Commenting on the publication, Revenue Chairman Niall Cody said: “Timely compliance rates remained strong in 2025 at 99% for large and medium cases and 93% for other cases, the second consecutive annual increase. This reflects the continued culture of strong voluntary compliance in Irish society.

We thank taxpayers, businesses, traders and their agents for their continued cooperation and high levels of compliance throughout 2025.”

Supporting taxpayers, business and trade

Revenue stated that rising costs and changes in the economic environment had affected businesses in a variety of ways, creating cash-flow pressures in some cases. The authority advised taxpayers experiencing temporary cash-flow difficulties to engage at an early stage.

Revenue Commissioner Maura Kiely said: “We provide flexible payment solutions tailored to individual taxpayers’ financial circumstances and capacity to pay. Our online phased payment arrangement (PPA) facility allows taxpayers to apply for a PPA, or adjust an existing PPA, at any time. This facility helps taxpayers maintain their record of timely compliance during temporary difficulties.

We have a strong track record in agreeing flexible and appropriate payment arrangements. Taxpayers can therefore be assured that we will work with them provided that they engage with us on a meaningful basis and, critically, bring any outstanding returns up to date and continue to file their returns on a timely basis. This is the case even where the associated liabilities cannot be paid.”

As at 31 December 2025, there were 18,653 phased payment arrangements (PPAs) in place, covering almost EUR 1 billion of debt, including EUR 708 million under the Debt Warehouse Scheme (DWS).

Revenue stated that where debt is not paid and there is no meaningful engagement, appropriate enforcement action is taken. The authority said this had reduced total debt outstanding from EUR 3.1 billion at 31 December 2024 to EUR 2.3 billion at the end of 2025.

Facilitating voluntary compliance

Revenue said that educating and informing taxpayers about their obligations is central to supporting voluntary compliance and enabling self-service. The authority noted that, while most taxpayers pay the correct amount at the correct time, errors can arise.

The Compliance Intervention Framework (CIF) provides opportunities for taxpayers to voluntarily address and self-correct errors. Revenue stated that those who avail of these opportunities typically benefit from lower-level penalties and generally do not risk either prosecution or publication.

For non-compliant cases, Revenue said it proactively identifies and addresses risk. Revenue Commissioner Ruth Kennedy said: “We are continuously expanding our data holdings and use advanced analytics to build a clearer picture of compliance behaviours and sector-specific risks. By cross-checking data against taxpayer declarations and our own records and intelligence, we identify discrepancies and non-compliance indicators.

This approach, which is underpinned by legislation, enables us to focus our resources where they have greatest impact and reduces the burden on compliant taxpayers.”

In 2025, Revenue carried out more than 237,000 audit and compliance interventions, yielding EUR 734 million. A further EUR 41.7 million was yielded from tax avoidance cases.

Frontier management and enforcement

Revenue said advanced risk analysis and profiling methodologies play a key role in protecting the State’s frontiers against drug trafficking, illicit smuggling and organised crime. The authority also participates in EU and international fora to share best practice across customs administrations.

In 2025, enforcement teams seized almost 40,000 kg of drugs valued at EUR 191.1 million.

Operational capability was enhanced with the launch of a new Customs Cutter, R.C.C. ‘Cosaint’, and the opening of a new State facility at Rosslare Europort, which includes a high-energy gantry X-ray scanner for advanced vehicle inspections.

Revenue also reported the discovery and dismantling of an illicit cigarette factory and the seizure of more than EUR 63.5 million worth of tobacco products during the year. Measures introduced in December 2025 strengthened controls on the movement of duty-paid tobacco into the State from other EU Member States by private individuals.

Digital innovation

Revenue said its “digital-first” service model reflects taxpayer preferences for managing tax affairs at a time that suits them. Investment continued in digital services, alongside direct assistance for those requiring additional support.

In 2025, the authority launched an AI assistant to support caseworkers in searching and querying Tax and Duty Manuals (TDMs), and introduced an agentic AI capability to draft initial versions of new manuals for review by subject matter experts. ‘Sandboxed’ Large Language Models (LLMs) were also introduced to assist staff with document summarisation, idea generation and internal code development and maintenance.

Commissioner Kennedy said: “We have strong governance processes which ensure our use of AI is safe, lawful and ethical, and aligned with EU legislation and national guidance on responsible use of AI in the Public Sector.

Expanded AI training was made available to all our people during 2025, to equip them with the knowledge and judgement to use these tools effectively. We therefore welcome the finding from our 2025 Employee Engagement Survey that over 70% of our people believe AI will create workflow efficiencies.”

Tax reform and modernisation

Revenue said it continued to support the Department of Finance in evaluating and developing the tax and duty policy framework.

Progress was made on IT developments to support systems for Pillar Two registration and filing, and a dedicated guidance hub was published. Potential in-scope entities and relevant stakeholders were contacted in 2025 to raise awareness of the registration process.

In-scope entities can now file their top-up tax information return and pay associated liabilities through ROS. Revenue reminded such entities of the 30 June 2026 filing deadline.

Looking ahead

Cody said: “We remain committed to fairly and efficiently collecting taxes and duties due to the State and implementing customs controls. As part of this, we will continue to provide services and supports to make it as easy as possible for taxpayers to understand and comply with their tax obligations.

Where new reporting obligations are implemented, we will engage with all relevant stakeholders to ensure there is sufficient awareness of and time to integrate these requirements into their business processes. For taxpayers struggling to pay their tax liabilities, we will work with them to find a mutually acceptable payment arrangement.

We will continue to deepen our understanding of tax and duty compliance behaviour and remain committed to confronting non-compliance in all its forms. We will also continue to disrupt and dismantle core supply chains used by those involved in smuggling and illicit trade through ongoing collaboration with our national and international law enforcement partners and agile deployment of our resources.”

Revenue said it would continue to represent Ireland’s position in discussions on customs reform and other policy matters, and provide support to the Department of Finance. Key upcoming changes include the introduction of a fixed Customs Duty charge on all consignments to individuals valued at less than EUR 150 entering the EU from 1 July 2026, including imports to Ireland from Great Britain.

An EU Customs Handling Charge will be introduced from 1 November 2026 to cover the increasing costs of managing e-Commerce goods within the EU, followed by the commencement of an EU Customs Data Hub for e-Commerce consignments from mid-2028.

Revenue will also allocate significant resources to support the Department of Finance during Ireland’s 2026 Presidency of the Council of the European Union.

Other priorities for 2026 include completing work to facilitate the removal of the MV Matthew from Cork Harbour; processing all submissions received under the disclosure opportunity to regularise misclassification of self-employment; and intensifying engagement with businesses, representative bodies, software providers and other stakeholders in preparation for ViDA and VAT Modernisation.

In concluding, Cody added: “Commissioners Kennedy, Kiely and I thank all Revenue staff for their dedication, drive and professionalism, without which our achievements throughout 2025 would not have been possible. We also thank those colleagues who retired in the past year, many of whom dedicated 40 or more years of service to the State.”

This announcement was made on 7 May 2026.