Irish Sovereign Green Bonds Update

The result of such high value MNC activity in Ireland: Ireland less impacted by Covid - in particular the tax base GDP overstates Ireland's progress but is still a good barometer for Revenue, in particular CT and IT Multinational sectors critical for Income tax and Corporation tax: proven true in 2020 Income Revenue Elasticity GG Revenue Tax MDD 0.96 0.93 Corporate Tax 2.26 Ex. CT 100% 0.86 90% GDP 1.08 1.03 1.33 1.05 80% 70% 30% 20% 10% 0% -10% -20% Half of CT, PAYE, VAT -30% -40% comes from five least -50% impacted sectors* -60% 60% 50% !!!! 40% 30% 20% 10% 0% VAT PAYE CT Three taxes combined Construction) % of CT, PAYE, VAT y-o-y change in GVA (2020) Other Sectors I Financial and Insurance I Admin + support (incl. Aircraft Leasing) ICT (tech sector) Manufacturing (incl. Pharma) Gníomhaireacht Bainistíochta an Chisteáin Náisiúnta National Treasury Management Agency Source: CSO, Revenue, NTMA Calculations *Agriculture sector pays minimal tax Elasticity based on 1995-2019 data. E = (annual % change in tax)/(annual % change in growth variable) 51

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