Cabinet is meeting on Thursday afternoon to decide if the State's 12.5 per cent corporate tax rate will be increased to 15 per cent.
Ireland has come under increasing pressure to sign up to the Organisation for Economic Co-operation and Development (OECD) deal on global tax reform.
Minister for Finance Paschal Donohoe has indicated a final decision will be made public after Cabinet meets at 4pm.
Minister for Foreign Affairs Simon Coveney said on Wednesday he was “hopeful” Ireland would sign up to the deal.
Previous estimates said the State could lose more than €2 billion a year in revenue if it signs up to the deal.
Ireland is one of nine countries not to have signed up to the deal, and has come under increasing international pressure.
Mr Coveney said: “Minister Paschal Donohoe will bring forward a recommendation on the basis of the latest text that’s going to be finalised for an OECD meeting that’s happening on Friday.
“The expectation now is that the OECD meeting on Friday will finalise a new framework and basis for international corporate tax.
“I am hopeful that Ireland can be part of supporting this new measure, but we have to wait for the final text, which hopefully will be available later on this evening.”
Mr Coveney repeated a fear expressed by other senior Government figures in recent weeks that failure to back the deal would isolate Ireland in the international community.
“Ireland does not want to be isolated in this space, but at the same time we certainly want to ensure that the view that we have in relation to tax, which is a view that many other small countries rely on us to make, is properly heard,” he said.
“We have asked for some reasonable changes that can provide as much certainty as possible in terms of managing the Irish economy going forward.”
