Category Taxation in Italy

Property Taxes to Rise in Italy

January 9, 2014 Taxation in Italy

ROME – Italy may change the rate applied to property taxes in an effort to ease tax burdens for low-incomes families after years of severe and ongoing austerity measures.

In a statement issued on January 8th the government of Italy announced that in the near future the rules for the taxation of property will be altered to grant local governments the power to vary a portion of the tax rate in order to ease the burden faced by low-income families by collecting more revenues from high-income households.

The change will allow local governments to increase the annual taxes on high-value properties by up to 0.08 percent, raising the total annual tax obligation to as high as 0...

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Italy Loosens “Google Tax”, But Maintains its Necessity

December 19, 2013 Taxation in Italy

ROME – Italy has confirmed that online businesses must pay taxes in the countries where their profits arise, and still hopes to raise tax revenues from as early as next year .

Late on December 17th the Budget Committee of the Lower House of the Italian Parliament amended the proposed bill, which has already been called in the national media Google Tax, reducing the list of online business activities falling under the scope of the national tax regulations.

Under the originally proposed rules for the Google Tax, which have now been overturned, any entity drawing online profits from Italian customers, could only do so through a businesses residing in Italy for the purposes of tax legislation, and could not do it directly from overseas or through an overseas registered company, and these meas...

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Italy Cracks Down on Online Businesses

November 7, 2013 Taxation In EuropeTaxation in Italy

The duckies invade GoogleROME – Proposed tax rules in Italy could soon ban the use of offshore entities when selling or advertising products online to customers in Italia.

On November 4th the Democratic Party of Italy tabled a new bill with proposed changes to the taxation of profits earned by online businesses operating in Italy.

The new tax rules, already being called the Google Tax, are not applied directly to the profits raised by the online businesses, but instead require all multinational enterprises involved in advertising or online retail in Italy to offer all of their services through a locally registered firm paying income taxes in the country.

According to the author of the Bill, Francesco Boccia, the changes will prevent multinational businesses from shifting their profits away from Italy and declaring...

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World’s First HFT Tax

September 3, 2013 Taxation in Italy

stock marketROME – Italy has become the first country in the world to enforce a tax specifically on high frequency trading activity.

In a statement issued on September 2nd the Ministry of Finance of Italy announced that a new tax of 0.02 percent has been instated on high-frequency trades of stock and derivatives transacted on the Italian national stock market.

The new tax will be imposed on any transaction performed within a time frame of 500 milliseconds of initially being lodged, regardless of the physical location of either party.

Concerns have already been raised that the new tax could hurt the national stock market, as high frequency trading activity is often claimed to provide liquidity and price discovery mechanisms.

In an effort to minimize the potential negative effects that the tax could ...

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Italy Turns High-Tech to Fight Evasion

August 21, 2013 Taxation in Italy

RedditometroROME – Italy has extended its arsenal of tools to combat tax evasion, with a new system to automatically red-flag taxpayers who are likely to be tax dodgers.

On August 19th the Italian Revenue Agency launched a new computer system to automatically check information about the incomes and expenses of taxpayers in order to uncover evidence tax evasion and tax dodging.

The system, officially called Redditometro, will cross-check 80 pieces of information about each taxpayer across 128 separate databases, automatically triggering a warning and calling for an investigation to be conducted if the declared incomes and recorded outgoings of a taxpayer are found to differ by mor than 20 percent.

As a first task the system will be used to look over a samples of records of 35 000 households over the la...

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