The Italian authorities will abolish the digital tax by 2024, mentioned Daniele Franco, Minister of Economic system, and outlined a timetable for the abolition of the tax that ought to substitute the brand new international tax.
“Digital taxes have by no means been the perfect resolution,” Franco emphasised after chairing the G20 assembly of finance ministers and central financial institution governors of 20 main developed and growing economies in Washington on Wednesday.
On the assembly, monetary officers supported the proposal to switch the worldwide tax system and impose a minimal international tax of 15% on the earnings of multinational firms with international revenues of greater than 20 billion euros and working revenue margins of greater than 15%.
The proposal was elaborated in negotiations beneath the auspices of the Group for Financial Cooperation and Improvement (OECD) and was accepted by 136 international locations together with Croatia.
It is usually agreed that international locations will share the tax rights of multinational firms with a variety of worldwide companies. These adjustments present for the gradual coordination and elimination of digital taxes launched by some international locations and prohibit the introduction of recent related taxes.
The particular deadline for the abolition of the present digital tax has not but been decided.
“We count on these international locations to abolish their unilaterally launched taxes earlier than 2024,” the Italian minister mentioned in a press convention after the assembly.
U.S. officers mentioned earlier this week that, in view of negotiations to abolish the digital tax, Washington will not have to impose reciprocal tariffs on international locations which have launched digital taxes, together with Italy, France, the UK, Spain, Austria, India and Turkey.