Ireland's corporation tax receipts for 2019 will be around €300m higher than previous estimates, giving the country the financial firepower to offset a hard Brexit, according to new data.
In a paper published ahead of next week's budget, the government said it expected corporation tax receipts of €10.28bn this year, rising to €10.44bn next year.
Corporation taxes, which are mostly paid by the large American multinationals that have made their home in Ireland, delivered almost €700m more than they did at this stage last year, totalling €5.84bn. Ireland is heavily dependent on corporation taxes, which have more than doubled since 2012 and now account for around 17.5% of total tax revenues.
Minister for Finance Paschal Donohoe has said he will set a "Brexit" budget in anticipation that Britain will fall out of the European Union without a deal, setting aside funds for vulnerable sectors
The Irish government's own summer statement predicted that a disorderly UK withdrawal could see an expected government surplus turn to a deficit of up to 1.5% with an estimated loss of up to 50,000 jobs.
There have also been predictions that the country - which already has a debt pile of €200bn, mainly a legacy of the 2008 economic crash - will have to start borrowing again more than it would like.
The country's largest business lobby group has called for €1.5bn in state aid to be made available to help Irish firms deal with the potential fallout of a no-deal Brexit.
Ibec said in a report published today that the government should set out a "framework of state aid support worth €1.5bn over the next three years". This should be included in Budget 2020, which is due to be set out by the government tomorrow.
The Economic and Social Research Institute warned that the government may need a supplementary budget in the New Year if the hit from Brexit is harder than expected.