Under the agreement with the Commission the following corporation tax regimes will apply:

Companies not subject to preferential tax regimes will pay the prevailing general rate of corporation tax which will be reduced from 32 per cent to 12.5 per cent by four percentage points a year between now and 2003.

Companies currently availing of preferential tax regimes or those whose establishment is approved from an agreed list before July 31st will continue to avail of the 10 per cent rate until 2010 for manufacturing exporters and 2005 for IFSC or Shannon Customs-Free Zone companies.

This group consists of:

(1) IDA Ireland approved - between 8,000 and 9,000 companies already in place, 40 of which were approved between January 1st and May 31st, and an additional 32 unannounced projects on which advanced discussion have taken place and

which have been deemed "in the pipeline";

(2) IFSC/Shannon companies - some 632 companies, of which 31 were approved between January 1st and May 31st, and an additional 11 "pipeline" companies.

Companies currently eligible for the preferential manufacturing rate, but IDA Ireland-approved after today - subject to a maximum of 77 a year up to 2005 - will enjoy a 10 per cent rate until 2010 when they will go on to the general 12.5 per cent rate.

Companies currently eligible for the IFSC/Shannon status but approved after today, subject to a maximum of 67 of a year up to 2000, will enjoy a 10 per cent rate until 2005 when they will have to pay 12.5 per cent.

IFSC/Shannon-type companies approved after January 1st, 2000 will pay the prevailing general rate.