The rise follows the introduction of the global 15% base rate of corporate tax for multinationals with income in excess of €750m (£648m) in line with the new OECD Pillar Two framework.

About 1,600 multinational groups are expected to be within scope of the higher tax rate, which came into effect on 1 January 2024. The 12.5% rate will continue to apply to the majority of businesses operating in Ireland.

Ireland has long been popular with US multinationals with tech giants like Microsoft, Apple, Amazon and HP all basing their European headquarters in the country due to the attractive tax environment.