Netflix, the US streaming service, has agreed to settle a tax dispute with Italy, according to the company and legal sources on Friday.

Prosecutors in Milan published a statement claiming they had reached an agreement with a worldwide video-on-demand streaming provider for the period October 2015 to 2019 and ordered it to pay EUR 55.8 million (roughly Rs. 460 crore).

They did not name the company involved in the settlement, but three persons with knowledge of the situation verified it was Netflix.

According to a Netflix spokeswoman, the firm is glad to have the problem resolved.

“We have maintained constant dialogue and cooperation with the Italian authorities and continue to believe that we have acted in full compliance with Italian and international rules,” the spokesperson said.

Prosecutors began looking into alleged tax evasion three years ago.

They claimed Netflix should have paid taxes in Italy because it relied on digital infrastructure to deliver content to the country’s 2 million users.

As part of the payment deal, Netflix has launched an office in Italy, establishing a base in Rome and hiring more than 40 people. Netflix settle tax dispute with Italy

The probe by Milan prosecutors, who argued that Netflix’s usage of cables and computer servers amounted to a physical presence in Italy, was initiated by tax police investigations in Italy.

Prosecutors in Milan have already investigated other US tech titans such as Apple, Amazon, and Facebook for tax evasion, allowing Italy to net several billion euros in fines and tax payments.

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