Minister for Enterprise, Trade & Innovation Batt O’Keeffe has said Ireland's corporation tax rate of 12.5% will not be changed.
His comments come after reports that the European Commission is preparing new plans that could lead to a common rule book on how corporation tax is calculated across the European Union.
Speaking on RTÉ Radio, Mr O'Keeffe said there is a legal guarantee from the EU that Ireland sets its own corporation tax rate.
He said the Irish rate was extremely important in relation to foreign direct investment here.
The European Commission is drawing up fresh plans on the manner in which corporation tax is co-ordinated across the European Union.
The proposal is understood to be part of a drive to re-invigorate the EU's internal market.
The new EU law would not force countries to introduce the exact same rate of corporation tax, but rather would introduce a common formula on how to calculate the tax on the profits of multinational companies.
Attempts to consolidate European corporation tax rates have been ongoing for almost ten years now.
However, little progress has been made following strong objections from Ireland and from some newer eastern European member states that want to keep their higher rates, which form a key part of their state's revenue.
The 12.5% corporation tax rate here is much lower than the EU average and is credited with attracting many multinational companies.
Meanwhile, IBEC, the group that represents Irish business, has said that it is opposed to the introduction of a Common Consolidated Corporate Tax Base in the EU.
The group has said the move would do nothing to improve the competitiveness of the EU and would damage the economies of smaller member states, such as Ireland.
