By David Blevins, Ireland Correspondent
The Irish government has confirmed that it is phasing out a controversial tax regime that has allowed multinational companies to save billions of euros.
Finance minister Michael Noonan signalled the closing of the loophole known as "double Irish" when he delivered his first non-austerity budget in seven years.
He said: "I am 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 Ireland."
Until now, an Irish subsidiary has been able to shift taxable profit to another Irish subsidiary in a tax haven such as Bermuda or the Cayman Islands.
Apple, Google, Microsoft and Facebook - all of which are thought to have benefited - will be given until 2020 to adapt to the change.
The tax advantages have been a major incentive for multinationals, so the government has introduced new measures to ensure the country remains attractive to investors.
A "patent box" scheme, similar to that in the UK, will reduce the level of corporation tax on patents and similar types of intellectual property.
The European Commission has been investigating tax deals between Ireland and Apple, and provisionally found that they were generous enough to amount to state aid.
Brussels had urged the Irish government to end the controversial tax policies or face a full-blown investigation which carried the risk of multimillion euro penalties.
Other aspects of the budget delivered in Dublin included funding to increase the number of teachers and police officers, along with measures to encourage house building.
Tax rises and spending cuts of €30bn (£23.8bn) have been imposed since 2007, but a stronger economic performance has signalled the end of austerity measures.
Unemployment remains high at more than 11%, and the introduction of water charges saw one of the largest protests for years in Dublin last Saturday.
The government has also unveiled a scheme for claiming tax back on water charges, three days after a candidate opposed to them won a by-election.
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