Government plans to abandon 12.5% tax rate for fear of 'pariah' status

Earlier this month, the G7 and OECD countries reached agreement but not unanimous consensus on the key aspects of a global tax deal which seeks to introduce a minimum rate of 15%. File picture: Sam Boal/RollingNews.ie

Ireland is set to abandon its long-held 12.5% corporation tax rate later this year, several senior Government sources have suggested.

While no formal government decision has yet been made, several Government sources have told the Irish Examiner it is the expectation that our major tax incentive for large multi-national firms is set to be relinquished as part of a new OECD tax agreement in October.