Netflix pays US$59 million to settle tax dispute in Italy

MILAN –

Netflix has agreed to pay greater than 55.8 million euros ($59 million) to settle a tax dispute, Milan prosecutors said Friday.

The fee covers taxes, penalties and curiosity from October 2015 via 2019. The streaming service additionally established an Italian authorized entity this 12 months, which can decide its Italian tax burden based mostly on subscriptions to Italian residents, prosecutors said.

Prosecutors in Milan said the investigation was triggered by the bodily presence in Italy of technological infrastructure, together with 350 servers, geared toward producing income.

Netflix welcomed the settlement that ends the case overlaying the tax years 2015 to 2019.

“We cooperated with the authorities all through this investigation and, as we now have at all times made clear, we acted in full compliance with Italian and worldwide tax regulation,” Netflix said in a press release.

Netflix formally opened an workplace in Rome earlier this month with about 70 staff.