Finance minister Brian Lenihan has said that corporate profits tax in the Republic of Ireland will not rise above its current rate of 12.5 per cent.
In his Budget speech this week, Mr Lenihan stressed that the rate was essential to the "vibrant and modern business base" of the Republic.
He added: "I want to emphasise that this rate of tax is not for changing upwards and it will continue to be a vital part of Ireland's economic brand."
The rate is one of the lowest on company profits in the EU, giving Ireland an advantage in attracting international companies.
Mr Lenihan also said that new companies would receive a three-year break from corporation tax and capital gains tax.
Meanwhile, Ireland's approach to corporate tax has been highlighted by US Republican party candidate John McCain, who proposes to cut rates for businesses in the country.
US businesses pay 35 per cent corporate tax – the second highest rate in the world.
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