Poland to start work on a digital services tax, deputy PM says
FILE PHOTO: Deputy Prime Minister of Poland and Minister of Digital Affairs Krzysztof Gawkowski arrives for a meeting with international investors in IA at the Elysee Palace as part of the Artificial Intelligence (AI) Action Summit in Paris, France, February 10, 2025. REUTERS/Gonzalo Fuentes/File Photo
WARSAW, March 24 : Poland's government will start work on a digital services tax bill, Deputy Prime Minister and Digitalisation Minister Krzysztof Gawkowski said on Tuesday, setting up a potential clash with key ally the United States.
Many countries, particularly in Europe, have levied taxes on the sales revenue of digital service providers, including Alphabet's Google, Meta's Facebook, Apple and Amazon. The issue has been a longstanding trade irritant for multiple U.S. administrations.
When plans for the tax were announced in 2025, U.S. ambassador to Poland Tom Rose called them "self destructive", saying it would harm relations with Washington. The U.S. embassy in Warsaw did not immediately respond to a request for comment on Tuesday.
Gawkowski said in a post on social media platform X that the new bill would ensure fair competition for Polish companies, higher budget revenues, and more funds for technology development and digitalisation in Poland.
"It's time for a level playing field. Today, global platforms often pay lower taxes than locally operating companies. This undermines competition and limits budget revenues. We're changing that," he added.
The bill assumes revenues from selected digital services, including online advertising, platforms connecting users, and data trading, would be taxed up to 3 per cent, but that would only apply to companies with global revenues of over 1 billion euros ($1.16 billion) and above 25 million zlotys ($6.79 million) in Poland.
The initiative follows the announcement of plans to limit access to social media for children under 15 in Poland, which could also put Warsaw at odds with firms such as Meta and Elon Musk's X.
($1 = 0.8625 euros)
($1 = 3.6845 zlotys)
