Donohoe confirmed the corporation tax rise following a Cabinet meeting, where it was agreed the new tax rate would apply to companies with turnover in excess of €750m (£636m). This means that Ireland is now part of the global corporate tax plan which has been put forward by the OECD.

In a statement, Donohoe said: ‘I believe we have now reached that point. This is the right decision. It is a sensible and pragmatic decision.

‘The government has given approval for Ireland to sign up to the political agreement at the OECD Inclusive Framework on a new tax framework to address the tax challenges of digitalisation.’

Speaking to the cabinet, the finance minister stated that he sought changes to secure ‘certainty and stability’.

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