The Italian government is planning to enforce a web tax in 2020 that will require digital companies to pay a 3% levy on some internet transactions, Reuters reported, citing a statement from Italian Economy Minister Roberto Gualtieri.
Italy intends to impose the so-called web tax on companies with annual revenues of at least €750 million and digital services of more than €5.5 million. Italy's Treasury anticipates that the web tax would generate about €600 million in revenues from 2020.
The government also sought recommendation from the European Commission on minimum taxation for companies in Europe. Implementation of the taxing scheme will be put into law through a government decree.
The statement comes around the same time of the Organisation for Economic Co-operation and Development's publication of a "unified approach" on taxing multinational companies. The OECD will seek broader political backing for its proposal by January 2020 and plans to present it in a new "OECD Secretary-General Tax Report" during the meeting of G-20 finance ministers and central bank governors Oct. 17 in Washington, D.C.
France implemented a taxation law similar to Italy's plan. France digital tax faced scrutiny from the U.S. government, wherein tech companies, such as Amazon.com Inc., Facebook Inc. and Alphabet Inc.'s Google LLC testified against France's digital services tax.
