Italian law aims to encourage foreign internet companies to pay more tax

Italian legislation proposed May 22 would increase tax collection from foreign multinationals that have online activities in Italy.

Under to the new proposal, multinationals with total annual revenues of more than 1 billion euros that have sales in Italy exceeding 50 million euros are encouraged to enter into negotiations with the Italian revenue agency to reach agreement regarding their tax position.

If a multinational is found have a permanent establishment in Italy, it can not only agree on its future tax bills, but also regularize its previous tax position to avoid disputes. The proposal reduces by 50 percent any administrative sanctions and waives any penalty for the offense of omission. As such, the measure seems more of a voluntary disclosure mechanism than new tax on web companies.

Read complete article: http://mnetax.com

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