Poland starts work on digital services tax for tech firms

Poland is drafting a bill to tax digital services from global tech firms with revenues over one billion euros. The move aims to ensure fair market competition.

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The government of Poland has officially begun drafting a digital services tax bill, a policy move that sets the stage for a potential diplomatic disagreement with the United States. Deputy Prime Minister and Digitalisation Minister Krzysztof Gawkowski announced the initiative on Tuesday, stating that the new legislation is intended to ensure that global technology platforms contribute their fair share to the national budget.

This proposed tax targets the revenues of major multinational corporations, including Alphabet Inc., Meta Platforms, Inc., Apple Inc., and Amazon.com, Inc.. Similar fiscal measures have been adopted by several European nations, though they remain a significant point of contention for U.S. trade officials. In 2025, the U.S. ambassador to Poland had previously cautioned that such a tax could be self-destructive and damaging to the relationship between the two allies.

Polish Deputy Prime Minister Krzysztof Gawkowski attending an AI summit in Paris, February 2025. REUTERS/Gonzalo Fuentes/File Photo

Gawkowski highlighted that the bill is a step toward establishing a more balanced competitive landscape for domestic companies.

"Today, global platforms often pay lower taxes than locally operating companies."

The minister noted that this disparity currently undermines competition and limits budget revenues and hinders funding for local technology development. The draft bill proposes a tax rate of up to 3% on revenues from specific digital services, including online advertising, data trading, and user-to-user platforms. This levy would apply to companies with annual global revenues exceeding 1 billion euros and local revenues in Poland of more than 25 million zlotys.

This legislative effort is part of a broader regulatory push in Poland, which also includes plans to restrict social media access for children under the age of 15. These developments indicate a growing trend of stricter oversight for global digital platforms operating within the country.

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