ROME — Italy’s tax revenue agency has ruled that the nation’s 25% “ethical tax” on income generated from adult content applies even to smaller independent online content creators.
The so-called “ethical tax” was enacted in 2005 and applies to any net income derived from the production, distribution, sale and performance of pornographic material, as well as material inciting violence. Since the surcharge was enacted prior to the rise of the digital creator economy, it originally impacted mainly adult studios and websites.
A recent ruling by the Agenzia Entrate’s Taxpayers Division Central Directorate for Small and Medium Enterprises, however, clarifies that the surtax also applies to creators using premium social media and fan platforms, even if they are paying taxes under Italy’s flat-tax system for small businesses and freelancers.
That system, known as the regime forfettario, includes freelancers reporting annual income of 85,000 euros or less. Tens of thousands of Italian creators earning under that amount therefore stand to be affected by the ruling and could now owe the Italian government a quarter of any income derived from material the revenue agency deems pornographic.