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Italy says its digital taxation could continue for another two years after the G20 approves the tax agreement

File Photo: Italy’s Minister of Economy, Daniele Franco, will speak on September 29, 2021 at a joint news conference with Italy’s Prime Minister Mario Draghi on the government’s new financial goals in Rome, Italy.Reuters / Yaranardi / File Photos

October 14, 2021

David Loader and Gavin Jones

Washington / Rome (Reuters) -Wednesday G20 Treasury Leader Approves Global Tax Agreement Calling for Elimination of One-sided Digital Service Tax, but Italian Minister of Economy Eliminates Digital Taxation imposed by Rome He said it could take up to two years.

136 countries have finally agreed to amend the international corporate tax when it comes to eliminating digital service taxes, primarily for US technology platforms such as Alphabet Inc’s Google, Facebook Inc, Amazon.com Inc, and Apple Inc. After that, a week that could be a source of new tensions with Washington.

Italy’s economic minister, Daniele Franco, chaired the G20 meeting, and then Rome, in line with the OECD agreement, would eliminate digital taxes by 2024, impose a minimum corporate tax of 15%, and on a large scale. He said he would partially redistribute tax rights to profitable multinational corporations.

The agreement is expected to be implemented by the end of 2023 and immediately bans the imposition of new digital taxes, but does not specifically mention when to abolish existing digital taxes. “Transitional measures are being discussed quickly.”

US authorities have called for a quicker elimination of existing digital taxes after the transaction.

Franco said the country’s digital taxes have always been the “second best solution” and hope that other countries will follow the same policy as Italy when canceling them.

“We expect the country’s unilateral taxes to be eliminated by 2024,” he told reporters at a press conference.

U.S. Treasury officials said Monday in Italy, France, the United Kingdom, Spain, Austria, India and turkey in talks on the elimination of digital taxes.

The USTR prepared tariffs, but immediately suspended tariffs to enable negotiation of global tax transactions. The suspension will expire on November 28th.

According to Franco, Italy currently collects a digital tax of around € 250 million ($ 290 million) annually based on the revenue of digital services sold domestically.

He said Italy would raise at least as much income from the new tax system. This allows market countries to tax rights on a 25% share of profits in excess of a 10% margin, based on the local sales of companies with revenues of $ 20 billion or more. ..

The arrangement was designed to generate tax revenues from major US technology companies and other industries.

The Information Technology Industry Council, an industry association representing high-tech companies in the United States, said it welcomed the G20 approval of global tax transactions, including a commitment not to impose a new digital services tax.

In a statement, Jason Oxman, CEO of the group, said, “Given that many unilateral digital services tax measures are still in place, companies are coveted for certainty and forecast. We continue to call for an urgent withdrawal to offer the potential. ”

($ 1 = 0.8622 euros)

(Report by David Lawder and Gavin Jones, edited by Peter Cooney)



Italy says its digital taxation could continue for another two years after the G20 approves the tax agreement

Source link Italy says its digital taxation could continue for another two years after the G20 approves the tax agreement

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