Tech News: Could Italy Levy A 'Web Tax' On US Tech Companies Apple And Google?

Italy is reportedly looking into levying a 3% "web tax" on all online transactions in the country, which would hit multinational big tech companies such as Apple and Google. The measure is included in Italy's national budget for 2020, as the country hopes to avoid implementing a general sales tax hike set for January.

The tax would apply towards companies bringing in global revenue more than $827 million, and whose digital services render over $6.1 million in Italy. Companies will have to submit an estimate of how much they owe, with the Italian authorities closely watching the process.

The Italian government believes that the tax will bring in the equivalent of over $661 million in revenue annually, with the tax expected to be implemented at the start of next year.

France also passed a 3% tax on digital companies in July, which would affect firms such as Facebook, Amazon and Google. Although the move caused tension with Washington, the U.S. and France have agreed to settle their differences. Once a new international agreement on digital taxation has been reached, French President Emmanuel Macron will agree to eliminate the tax.

EU authorities are looking at harmonizing tax policy across the bloc in order to get multinational companies to pay more in taxes.

Currently, many multinational companies choose to move to Ireland and Hungary, due to low corporate tax rates, giving those countries reputations as tax havens on the continent.

The EU is cracking down, however, with the European Commission ordering Apple in 2016 to pay $14 billion in back taxes it owes in Ireland.