Google Ireland has made a tax settlement totalling €345m, it has emerged.

Accounts for last year for the company, lodged with the Companies Registration Office in recent days, refer to how it "agreed to the resolution of certain tax matters relating to prior years" after the year end.

However, the accounts do not detail what the nature of the settlement are or which tax authority the settlement was made with.

€218m of the settlement relates to historic tax adjustments, with the balance of €127m for related interest owed.

A spokesperson for Google Ireland declined to elaborate further on the matter.

The accounts show that profit before tax at the Irish operations of the search giant last year rose to €2.854 billion, up from €1.94 billion a year earlier.

The company paid tax, including the Revenue settlement, of €622.3m for the twelve months, up from €263.3m in 2019.

Turnover rose from €45.7 billion to €48.4 billion, an increase of €2.7 billion on the back of higher advertising revenues.

A dividend was not paid for 2020, but according to the accounts, the company paid interim dividends of €3 billion to its parent this year.

The company's average headcount increased from 3,949 in 2019 to 4,314 last year.

On average, those staff took home €174,868 in salaries, shares, pension contributions and other payments, up from €156,488 a year earlier.

Google Ireland's cost of sales decreased from €14.3 billion to €12 billion in the year, a reduction of €2.3 billion.

Administration expenses increased by €3.9 billion to €33.6 billion in the year, due to higher royalties paid to a group undertaking and the increase in headcount which it said was necessary to support the growth of the business.

"2020 was another strong year for Google Ireland," the spokesperson said.

"For the last 18 years, it has played a key role in the success of Google's EMEA business and we continue to invest in our Irish operations and supporting Irish businesses," the spokesperson said.

"In 2020, we completed the purchase of the former Treasury Building and added over 300 new (full time) roles to Google Ireland."

"We also helped over 60,000 Irish SMEs engage and grow online and provided free training to over 40,000 people in digital skills during the pandemic," the spokesperson added.