Italy has joined France and will impose a digital tax on tech giants. The tax will come into effect on January 1. The digital tax imposes a 3% tax on some digital revenues for companies such as Google, Facebook and Amazon. By imposing a digital tax on the tech giant, the tax could raise 600 million euros a year for Italy’s finances.
The tax applies to internet technology companies with annual global revenues of at least 750 million euros and digital services in Italy, which generate s5.5 million euros.
As transatlantic tensions escalate, the US and Europe are trying to reach an agreement at the Organisation for Economic Co-operation and Development.
Treasury Secretary Steven Mnuchin has previously raised “grave concerns” about the agreement being reached. Mnuchin said the current OECD negotiations were crucial to resolving the issue.
In a blowback to France’s digital taxes, the Us is preparing to impose tariffs of up to 100 per cent on France’s $2.4 bn products.