Italy’s economy minister sees the start of online taxes

On Tuesday, Economy Minister Roberto Gualtieri said Italy would implement an “online tax” planned in 2020, forcing large digital companies to pay a 3% tax on some Internet transactions.

Digital companies shift income to low-tax countries or not, such as Ireland and international treaties, protect them from paying taxes in countries where they do not have what is termed a “permanent institution”.

“Profits should be taxed where they are made,” Gualtieri told a parliamentary session.

Italy and other members of the European Union have long complained about how Facebook, Google and other internet giants collect huge profits in their home countries, but pay taxes in excess of several million euros.

In Rome on Tuesday to introduce a production partnership with Italy’s largest commercial broadcaster Mediaset, Netflix Chief Executive Officer and Founder Reed Hastings said the US video storage service planned to open offices in Italy and pay taxes locally. .

The Italian online tax will apply to companies with annual revenues worth at least 750m euros and digital services in excess of 5.5m.

The measure was originally intended to take effect in 2019 before being pushed back until next year. It will be implemented through a government decree.

The Treasury predicted in December that online tax would yield 600m euros in revenue by 2020.

He also said the EU would impose a tax on digital services even in the absence of a global agreement on an internet tax./Investing.com

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