Italian lawmakers mull internet tax

Italian media reports, confirmed by expert legal and tax sources, suggest that the spectre of “point of consumption” defined internet taxation is about to be resurrected in Italy over two years after a similar motion was rejected.

The imposition of such a tax could impact Italian online gambling operators, a point confirmed by its chief proponent, Economy Undersecretary Enrico Zanetti.

According to some reports, Italian prime minister Matteo Renzi, who opposed the concept two years ago, has undergone a change of heart and is now favourably disposed towards the proposed “Digital Tax”, which Zanetti would like to see implemented from January 2017.

The proposal currently suggests a 25 percent withholding tax on companies operating in the Italian market that have been transacting over the Internet for at least six months with revenues in excess of Euro 5 million.  The withholding tax would be applied by the financial institution processing the payments from Italian residents.

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