Ireland's tax loophole, which several multinational corporations have capitalized on to evade tax and thereby save billions of dollars, is to be closed.

On Tuesday, Irish officials announced plans to change the controversial corporate tax law in 2015. 

US companies like Apple, Google, Facebook, Twitter and PayPal - who are known to be exploiting the "Double Irish" law - have until 2020 before Ireland's tax loophole is completely closed and replaced.

Reports indicate that Irish authorities are having a change of heart due to persistent international pressure, particularly from the US and the European Union. Many have criticized Ireland's tax loophole, calling it an unfair strategy to attract foreign investment. 

"In many respects, I think this change of law is to improve public relations and inter-government relations with the United States," said Ryan Dudley, an expert in international taxes with Friedman LLP.

The European Union is currently investigating Ireland and Apple. Regulators are reportedly looking to see if the US tech giant was given a special tax deal by the government in exchange for investment. Meanwhile, both parties have since denied this allegation.

"Aggressive tax planning by multinational companies has been criticized by government across the globe and has damaged the reputation of many countries, the so-called Double Irish is one of many such schemes," Michael Noonan, the Irish Finance Minister told the country's parliament.

Ireland's corporate tax rate - 12.5% - is considerably lower than that of most developed countries including the US. It is this, among other things, which has attracted multinational corporations from all over the world to Ireland.

Mr. Noonan has also noted that "the 12.5% tax rate never has been and never will be up for discussion." He said while the government was willing to undergo some changes in its first non-austerity budget since 2007, the country's corporate tax rate has been the pillar of its economic growth. 

"The 12.5% tax rate is settled policy. It will not change, "Noonan said. 

Reports indicate that US corporations are holding about $2 trillion in offshore accounts that are legally covered by laws like Ireland's tax loophole.