Ireland will sign up to an international agreement that will increase the nations Corporate tax rate from 12.5% to 15%.
Minister for Finance Paschal Donohoe said: “I believe that the upsides of being in such a historic international agreement far outweigh the downsides of staying out. This is a difficult and complex decision but I believe it is the right one.”
The new proposals were signed by the G20 group of powerful economies in July.
Ireland will become the 135th of 140 OECD countries to sign up to the deal.
Ireland did not originally sign up to the plans in July, with Paschal Donohoe wanting more clarity before such an important deal was signed.
G20 leaders are expected to formally sign off on the deal when they meet in Rome later this month.
The new tax regime could be in place by 2023.
IMAGE – Paschal Donohoe