Newly filed accounts for Google Ireland show the company paid €163.8m in tax last year, up from €47.8m a year earlier.

The tax was paid on profits of €1.183 billion, an increase of €889.4m on 2015, giving an effective tax rate of 13.8%.

The profit came from a turnover for the twelve months of €26.3 billion, up €3.7 billion on the previous year.

The company said the sharp rise in turnover was primarily down to an increase in advertising revenue from Google websites and the websites of those who use its products.

Sales costs increased by €1.4 billion to €6.9 billion as a consequence of having to pay more to those who direct search queries to Google's websites through revenue-sharing arrangements.

Administrative expenses rose to €18.4 billion in 2016, an increase of €1.5 billion.

The company now employs 7,000 direct and contract staff here, a 9% increase in headcount since the end of last year, driven by what the internet giant said was a continued strong performance.

267 new direct jobs were created over the year, with around 500 contract openings filled.

The average annual salary package of the 3,080 direct employees working at Google Ireland at the end of 2016 was €136,827.

Yesterday the company confirmed it had taken a lease out on the Velasco building on Dublin's Grand Canal, providing an additional 51,000 sq ft of office space for its operations here.

2016 also saw the opening of the company's second data centre in Ireland following an investment of €150m.

"2016 was a year of continued growth with global demand for our advertising products and services continuing to increase," said Google's Country Manager for Ireland Fionnuala Meehan.

"The EMEA sales organisation here in Dublin is driving that growth across Europe and we continue to deliver value for our advertisers, publishers and partner networks."