ITALY AND U.S. CALL FOR FAIR DIGITAL TAXATION AMID GROWING TECH INVESTMENTS

An Emirati Magazine publication – Released on April 19,2025 | www.emiratimagazine.com

Italy and the United States issued a joint statement on Friday calling for a "non-discriminatory" approach to taxing digital services, signaling a possible shift in Italy’s stance on a contentious levy targeting U.S. tech giants like Google, Apple, Meta, and Amazon. The announcement followed Italian Prime Minister Giorgia Meloni’s meetings with Donald Trump and his deputy JD Vance, who gave her a notably warmer welcome than other European leaders.

Italy currently imposes a 3% tax on digital revenues from companies with global sales over 750 million euros, generating under 500 million euros annually. Despite its limited financial impact, the tax remains politically sensitive. Meloni faces pressure from coalition parties to retain it, while also managing U.S. concerns. Economy Minister Giancarlo Giorgetti emphasized bilateral talks over EU-wide negotiations, with a meeting scheduled with U.S. Treasury Secretary Scott Bessent. The joint statement also highlighted American investments in Italy’s AI and cloud infrastructure, particularly by Amazon's AWS.