Italy to impose new tax on digital companies

18 Oct 2019

Italy to impose new tax on digital companies

Italy to impose new tax on digital companiesItaly will implement a 3% web tax on large companies for their web-based (internet) activity from 2020. The announcement was made by the Italian Economy Minister Roberto Gualtieri.

The new Italian web tax will be applied on US technology companies like Facebook, Google and Amazon.
 	The companies with annual revenues worth at least €750 million and digital services exceeding €5.5 million will pay the tax.
 	This new web tax is expected to bring in revenues of €600m from 2020.
 	The European Commission is also working on minimum taxation for companies across Europe.

However, this clause is mentioned in the draft budget for the year 2020. It has not been implemented yet.

Background

The members of the European Union(EU) had concerns about web companies including Google collecting large profits despite paying little taxes.
 	However, the EU has so far failed to agree as a group on how to tax the firms.
 	France and the United States reached a deal in August to end an issue over a French tax on big internet companies.

Today, digital companies continue to grow and governments have been developing new taxation laws to accommodate this growth.

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