Italy’s new web tax

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Last week, Italy approved a new tax on giant digital companies, which President Donald Trump has threatened to retaliate against.

Questions:

  1. According to draft legislation, what are some of the U.S. companies that will be obliged to pay a 3% levy on internet transactions?
  2. How much is the Italian government expected to recoup from the tax?
  3. What was the deal that France and the United States reached in August regarding internet companies?
  4. What is the OECD’s position on taxing internet companies?

Source:

Fonte, G. (2019). Italy to introduce web tax on digital giants from 2020. Reuters, Oct. 16 (Retrievable online at https://www.reuters.com/article/us-italy-budget-web-tax/italy-to-introduce-web-tax-on-digital-giants-from-2020-idUSKBN1WV138#targetText=ROME%20(Reuters)%20%2D%20Italy%20approved,threats%20of%20retaliation%20from%20Washington.&targetText=O)%2C%20to%20pay%20a%203,text%20of%20the%20draft%20budget.)