The ratings agency, Standard & Poor's, has said Ireland’s decision to join the OECD global corporate tax deal may 'dent’ government revenues ‘in the absence of offsetting budgetary measures.’

The ratings agency notes that over the past decade, Ireland has been ‘increasingly reliant on corporation tax receipts.’

"It has outperformed its budgetary targets, including during the COVID-19 pandemic, thanks to the increased profitability of some big multinationals, mainly in the computer services and pharmaceuticals sectors," it said.

"Corporate tax receipts in Ireland tripled in euro terms between 2010 and 2020, and their share of total tax revenues surged from 12.4% to 20.7% during this period."

"In addition, the corporate tax base is highly concentrated: half of Ireland's corporate tax receipts come from just 10 companies."

However, it also notes that the public finances have improved in recent years and this gives the Government some leeway to mitigate the impact of the proposed changes to international tax policy.

It concludes its note by saying it does not expect the OECD agreement to alter their view on Ireland’s competitiveness or to have any material effect on their current ratings on Irish debt.

"Most of the Irish corporate issuers we rate are indigenous or have operated in Ireland for a long period and will continue to benefit from the country's supportive business environment," it said.

"A higher tax rate will negatively affect the profitability of Irish banks, but importantly, will not impinge on most of their business customers, who will fall below the revenue threshold."