S&P: Corporation tax hike will weigh on Irish public finances

Although the longer-term outlook for new foreign direct investment is 'uncertain', the ratings agency believes that 'most' multinationals will not relocate out of Ireland.

Finance minister Paschal Donohoe recently agreed to sign the OECD deal that will see our corporation tax rate rise to 15%.

The overhaul of the way multinationals are taxed around the world will weigh on Ireland's exchequer, should there be no offsetting measures, an S&P report has stated.

The ratings firm stated that the Government has become "increasingly reliant" on the significant amount of tax revenue it raises from large companies.