Finance Minister Michael Noonan has abolished the controversial "double Irish" tax rules in the Budget.

Mr Noonan said he is abolishing the ability of companies to use the 'Double Irish' by changing our residency rules to require all companies registered in Ireland to also be tax resident.

In his fourth budget, Mr Noonan laid out what he called a roadmap to Ireland's tax system aimed at attracting foreign direct investment.

The arrangement has been the subject of intense international comment and criticism in recent months, and was the subject of a major EU report last week.

Mr Noonan said the new laws will take effect from January 1 2015 for new companies.

He said that for existing companies, there will be provision for a transition period until the end of 2020.

"This proactive change will not bring an end to international tax planning. We are giving certainty to investors about corporate tax in Ireland for the next decade," he said.

"These measures will enhance Ireland’s corporate tax regime and align it with best practice internationally. It will ensure that Ireland continues to be the home of the best and most successful companies in the world. It will attract and retain companies with real substance offering real jobs," he said.

Mr Noonan also reiterated that there will be no change to the country's headline 12.5pc rate of corporation tax.

"The 12.5pc tax rate remains at the heart of this. The Government has successfully protected the 12.5pc tax rate in recent years. The 12.5pc tax rate never has been and never will be up for discussion. The 12.5pc tax rate is settled policy. It will not change," he said.

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Online Editors