Italy Follows France On Digital Service Tax

Italy and France have introduced digital service taxes targeting tech companies. Italy's 3% tax applies to digital revenues over $831 million, including $6 million generated locally, effective January 1st. France's similar tax targets firms with over $850 million in revenue, generating at least $27 million in France, and applies retroactively. These measures aim to ensure tech companies pay taxes based on digital activity rather than headquarters location, reflecting a broader international effort to increase tax contributions from US tech firms in countries where they operate.

What percentage is the new digital service tax approved by the Italian parliament?

• 3%

• 4%

• 1%

• 2%

How much revenue is expected to be generated by the Italian digital service tax?

• $6 million

• $500 million

• $831 million

• $1 billion

What is the minimum revenue a tech firm must generate in France to be affected by the new French digital tax?

• $10 million

• $100 million

• $27 million

• $50 million

Which aspect does the French digital tax focus on for taxation?

• Digital activity

• Company headquarters location

• Employee count

• Market share

What is the broader goal of the digital tax initiatives by France and Italy?

• To reduce digital services

• To ensure US tech companies pay more income tax where they have users

• To promote local tech startups

• To increase local employment