Dublin, Oct 8 (TIWN) The Irish government has agreed to join an international agreement to reform the global tax rules to address the challenges arising from the digitalisation of the global economy, according to a statement released by the Irish Department of Finance.

"The Government has given approval today for Ireland to sign up to the political agreement at the OECD (Organisation for Economic Co-operation and Development) Inclusive Framework on a new tax framework to address the tax challenges of digitalization," said Finance Minister Paschal Donohoe in the statement.  According to the statement, there are two pillars to the OECD agreement. Pillar One will see a reallocation of a proportion of profits to the jurisdiction of the consumer, and Pillar Two will see the adoption of a new global minimum effective tax rate applying to multinationals with global revenues in excess of 750 million euros (about 866 million U.S. dollars).  "The agreement to be discussed at the OECD's Inclusive Framework tomorrow has been updated to provide additional clarity, which prevented Ireland joining the consensus in July," said the statement, adding that the proposed minimum effective tax rate of "at least 15 percent" in the previous version of the agreement has been set to a precise rate of 15 percent.  In the previous negotiations, Ireland refused to sign up to the agreement due to concerns that the wording of at least 15 percent could mean a further rise in tax rate in the future, according to local media reports.  "We have secured the removal of 'at least' in the text. This will provide the critical certainty for Government and industry and will provide the long-term stability and certainty to business in the context of investment decisions," said Donohoe.