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Italy May Probe Netflix's Tax Affairs

by Ulrika Lomas, Tax-News.com, Brussels

11 October 2019


Milan's Public Prosecutor's Office has launched an investigation into whether Netflix owes tax in Italy, Italian daily Corriere Della Sera reported October 3, 2019.

Prosecutors are reportedly to argue that Netflix should pay tax in Italy, despite having no employees or offices there, because of the significant digital activities it does there and the local infrastructure it relies on to provide its streaming services.

According to the Corriere Della Sera report, prosecutors are to argue that Netflix's arrangements for the sole use of servers and infrastructure in Italy to render services to consumers in Italy amounts to it maintaining a taxable permanent establishment there.

TAGS: tax | employees | transfer pricing | Italy | services | BEPS

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