The World Bank says that Ireland is the easiest country in Europe in which to pay business taxes.

Ireland also comes sixth out of 183 countries surveyed worldwide in a report compiled by PricewaterhouseCoopers for the World Bank.

It found that Ireland has the second lowest overall business tax rate in Europe at 26.5%. The lowest is Luxembourg at 21% and the highest is Italy where overall business taxes amount to 68%.

The report also estimated that the time it takes businesses to comply with tax rules in Ireland is 76 hours, the second best in Europe. Ireland ranked ninth for number of payments, with nine. The report covers all taxes paid by businesses, not just corporation tax on profits.

Speaking about the Irish result, PwC Ireland senior tax partner Colm Kelly said having simpler tax systems with competitive business tax rates gave Ireland a real advantage in the market for attracting direct investment.

He also said one of the factors in Ireland's high ranking was Revenue's approach to electronic filing and payments. Mr Kelly said Revenue had been taking a proactive approach to making it easier for firms to deal with their tax obligations.