- Removal of Revenue Threshold: The Italian 2025 Budget Law eliminates the €5.5 million local digital services revenue threshold for the IDST, expanding the number of potential taxpayers subject to this tax, applicable to entities with revenues exceeding €750 million.
- Revised Payment Deadlines: The law introduces an advance payment for IDST due by November 30, equal to 30% of the previous year’s tax, with the balance due by May 16 of the following year, while the IDST return deadline remains June 30.
- Scope of Taxable Digital Services: The IDST applies to various digital services, including advertising and data transmission, at a rate of 3%, and taxpayers must analyze their revenue streams to limit their taxable base under this tax regime.
Source PwC
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