Italy’s Economy Minister has confirmed that the country will impose a 3 per cent ‘online tax’ on large-scale web-based activity, and it will come into force in 2020 – a year later than first suggested.
The 3 per cent tax will be applied to certain online transactions for companies with annual revenues worth at least €750 million, and digital services exceeding €5.5 million.
The news is seen as a small positive for Italy’s broadcasters, in particular Mediaset which is not required to pay the tax.
Mediaset announced earlier this month a joint venture with Netflix to co-finance films in Italy as streaming giant opens an office in Italy (having announced a similar JV with Canal+ in France last month). The Italian JV covers co-financing of seven movies shot in Italy by independent local filmmakers. The movies will be available worldwide on Netflix from next year. Mediaset will broadcast the Netflix-branded movies on its free-to-air channels in Italy 12 months later.