This is how the web giants preside over Italy (and Milan). Mediobanca report
All the details on the Italian branches of the web giants from the report edited by Mediobanca on Websoft (Software & Web Companies) in the three-year period 2019-2022 and in the first 9 months of 2023
The web giants preside over Italy through subsidiaries, located largely in the North, especially in Milan and its province.
This is what emerges from the annual survey of the Mediobanca Research Area on the 25 largest international WebSoft (Software & Web Companies) in the three-year period 2019-2022 and in the first nine months of 2023.
In 2022, the branches of the WebSoft giants paid 162 million euros to the Italian tax authorities, for an effective tax rate of 28.3%. From 2024 the Global minimum tax should also become operational in Italy which will lead to the application of the 15% rate on the profits made by multinationals with an annual turnover exceeding 750 million.
THE NUMBERS OF THE BRANCHES OF THE WEB GIANTS IN ITALY
There are many business models used by WebSoft, differentiating between those that make use exclusively of online channels for the development of their business and the sale of their services (typically advertising, such as Meta), those that develop exchange and meeting platforms between users or hybrid ones, present on the web and at the same time in the territory (for example through factories, employing local employees such as Amazon).
In particular, the aggregate turnover of the Italian branches reached 9.3 billion duero in 2022, with approximately 26.4 thousand workers. Compared to 2019, there are approximately 11 thousand more employees, mostly hired by the Amazon group which boasts the largest number of employees in our country (16,250 units in 2022). The aggregate of Italian subsidiaries has a minimal representativeness compared to the worldwide total of WebSoft, the report underlines.
While turnover and EBITDA show double-digit increases of 79.5% and 31.4% respectively compared to 2019, pre-tax profit and net profit instead grow by only 10.8% and 2%, Mediobanca notes .
ABOUT TAX…
In 2022, the Italian subsidiaries of the WebSoft giants paid 162 million euros to the Revenue Agency, compared to an effective tax rate of 28.3%. If the Digital Service Tax were also considered, the total taxes paid in 2022 would reach over 206 million euros, equal to a tax rate of 36%.
Finally, from 1 January 2024, the Global minimum tax (the 15% tax relating to multinationals) should also be applied in Italy, but the Digital Service Tax will remain operational until Pillar One comes into force («re- allocation of taxing rights"), scheduled for 2025, the report points out.
This is a machine translation from Italian language of a post published on Start Magazine at the URL https://www.startmag.it/economia/ecco-come-i-giganti-del-web-presidiano-litalia-e-milano-report-mediobanca/ on Tue, 02 Jan 2024 06:16:30 +0000.