MILAN, Italy: Netflix and Italy have agreed to a $59 million settlement to to settle a four-year tax dispute, Milan prosecutors have announced.
At issue were payments for taxes, penalties and interest from October 2015 through 2019.
Netflix also agreed to establish procedures to calculate taxes in Italy based upon the number of subscribers to the streaming service.
Prosecutors in Italy said the investigation followed information that Netflix had developed a physical presence in Italy, including 350 servers, aimed at producing revenue that was not declared or taxed.
Meanwhile, Netflix officials praised the settlement that resolves the claims covering the tax years 2015 to 2019.
"We cooperated with the authorities throughout this investigation and, as we have always made clear, we acted in full compliance with Italian and international tax law,'' Netflix said in a statement.
This month, Netflix opened an office in Rome with some 70 employees.
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