The Government is understood to have secured clearance for the 12.5 per cent tax rate to remain for companies under the €750 million turnover threshold. There are now strong indications that late contacts between the Minister for Finance, Paschal Donohoe and senior EU commissioners have cleared the way for the lower rate to remain for all companies except the major multinationals who will face paying the higher 15 per cent rate.

While further negotiations may be needed on the details on how this will operate under EU State Aid rules, Mr Donohoe has been in touch with European competition commissioner Margrethe Vestager in recent days, including at a face-to-face meeting in Brussels on Monday. Securing the lower rate for domestic companies would mean they would not face an increasing tax bill moving out of the pandemic.

Sign off

The Cabinet is to be asked today to sign off on the State's participation in the OECD draft deal, involving the new 15 per cent for multinationals. The deal will set the level at exactly this rate, rather than referring to "at least 15 per cent" as it did in an earlier draft. Mr Donohoe has been seeking assurances from the European Commission that it will not seek to impose a higher rate when the OECD deal is translated into EU law. It appears that the Government will say these have been forthcoming, with senior commissioners indicating that the commission would not try to " gold plate" any deal.

The Government will present the new package after Thursday’s cabinet meeting, arguing that its strategy of holding out and now signing the original draft deal has led to some meaningful concessions which have helped to underpin Ireland’s position,