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Introduction

On October 16, 2019 the Italian government announced a 3% tax on digital companies as part of its draft 2020 budget. Only companies with revenues of at least €750m and digital services exceeding €5.5m will face the tax, which is expected to generate revenues of €600m a year.

Highlights

  • Italy is not the first EU member state to issue such a tax, several countries have already announced plans to implement their own regimes since an agreement is yet to be reached at EU level for a region-wide approach.

Features and Benefits

  • Assesses differing tax regulations in EU member states
  • Explains Italy's proposal for taxing digital giants

Key questions answered

  • How does Italy plan on taxing the digital companies that deliver content to the country?
  • What policies do other EU member states have in place to tax digital giants?

Table of contents

Ovum view

  • Summary
  • GAFA face 3% tax in Italy
  • EU member states unable to come to a consensus on a new tax regime
  • Regulators are beginning to attempt to level the playing field between OTT services and traditional providers

Appendix

  • Further reading
  • Author

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