Changes have been made to the proposed digital services tax during the legislative process.
The digital services tax proposal is included in the budget law 2020. The Italian upper chamber (Senato della Repubblica) on 16 December 2019 approved the budget law 2020, and sent the legislation to the lower chamber (Camera dei Deputati) for its consideration.
The following changes were made by the upper chamber to the digital services tax provisions of the budget law 2020:
Taxpayers that could be subject to the digital services tax need to immediately consider possible implications of the changes made by the upper chamber (as noted above) and whether there are action steps that require immediate attention.
Because the budget law must be finalized by 31 December 2019, tax professionals believe that the lower chamber would not have time to make any further changes to the digital services tax proposals because any such amendments would have to be returned to and approved by the upper chamber.
Read a December 2019 report [PDF 205 KB] prepared by the KPMG member firm in Italy—that includes an unofficial English translation of the digital services tax legislation, with legislative changes highlighted in bold
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