Italy planning new tax on digital companies such as Apple

According to Reuters, Italy is preparing a new tax on digital companies such as Apple in its 2020 budget, as it seeks alternative revenues that will allow it to scrap a scheduled increase in sales tax.

If approved, the tax will require multinational web-based giants to pay a 3% levy on Internet transactions. Reuters says this plan is expected to yield around 600 million euros each year, and will apply to companies with annual global revenues worth at least 750 million euros and digital services exceeding 5.5 million euros in Italy.

The new scheme looks to take effect in January, sources said. The article says it will operate under a “self-assessment taxation regime” by which the companies submit a calculation of the amount owed.