Written by Giangiacomo Olivi

Some Italian parliament members published a proposal for a new law that may dramatically change the scenario for e-commerce and web operators doing business in Italy.

The proposal (called by some commentators as “Digital” or “Web Tax”) is substantially a combination of domestic rules affecting the taxation of the digital economy. Also in line with the OCSE “Action Plan on Base Erosion and Profit Shifting (BEPS) the proposal includes:

  • the setting up of a new concept of permanent establishment in Italy (which should cover also a “virtual permanent establishment” in line with the OECD approach);
  • the application of a 25% withholding tax to be applied by the financial institution processing the payments made to a foreign e-commerce provider by an Italian customer (B2C transaction);
  • the application of a 25% withholding tax to be applied where it is identified a hidden “virtual permanent establishment” on payments made by an Italian company to a foreign e-commerce provider (B2B transaction). Also in this case the withholding tax is applied directly by the financial institution processing the payment process.


Continue Reading

Written by: Carol Umhoefer; Farid Bouguettaya; and Maruschka Graham

In 1994, France implemented a law, known as the “Toubon Law” after France’s then-minister of Culture, Jacques Toubon, to preserve the French language, protect French consumers and promote French culture. At the time, the world wide web
Continue Reading