Strong corporate tax revenues from multinational companies based here will continue until 2020 at least, a Government-commissioned review has predicted.
The review was sought by Independent TD Katherine Zappone following the Apple Tax ruling from the European Commission and was carried out by economist Seamus Coffey, who is also Chairperson of the Irish Fiscal Advisory Council.
The country's 12.5% corporation tax rate was not part of the review, though its terms of reference included tax transparency, avoiding preferential treatment, delivering tax certainty and maintaining competitiveness.
Today's report provides a highly detailed account of proposed changes to the Irish corporate tax code that will bring it into alignment with the international agreement on limiting tax base erosion and profit shifting, known as the OECD BEPS process.
The country's tax take has been boosted in recent years by large payments by multinational companies, particularly in the technology sector.
However these payments tend to be volatile depending on where the companies incorporate valuable intellectual property.
"Although it is impossible to be definitive and the volatility in receipts will remain, the level-shift increase in corporation tax receipts seen in 2015 can be expected to be sustainable over the medium term to 2020," the report into Ireland's corporate tax system said.
The Minister for Finance Public Expenditure & Reform Minister Paschal Donohoe described the forecast as "very positive."
The report also acknowledged that Ireland has reached the highest standards with regard to tax transparency, and it made a number of recommendations to ensure that we continue to meet the highest international standards.
These recommendations include scrutiny of proposed measures to meet OECD and EU standards on preferential treatment, updating and expanding the scope of the country's transfer pricing regime and enhancement of the resources of Revenue to deal with international dispute resolution.
In a statement, Finance Minister Paschal Donohoe said that he welcomed the emphasis given in the review to the importance of certainty, which he said is core to Ireland's corporate tax offering.
"Our 12.5% corporation tax rate remains the bedrock of our competitive corporation tax regime and that is not going to change," the Minister said.
He also said that the review provides a clear road map and timeframe for Ireland to implement important international reforms.
Mr Donohoe says he will now set up a consultation process on the report to see how measures in it can be implemented. Ms Zappone welcomed the review as a step towards a fairer, more transparent system
However Chartered Accountants Ireland said that if every measure in the report was implemented, it would result in a higher tax take from the corporate sector in Ireland.