Poland Proposes 3% Tax on Big Tech to Bolster Domestic Sectors
Poland is set to introduce a 3% tax on large technology companies, aiming to bolster its own technology and media sectors. As global negotiations continue at the OECD to adjust the tax framework for the digital age, various European nations are creating their own taxes targeting predominantly US-based tech giants, reports 24brussels.
The Polish government, led by Donald Tusk, expressed its intention to tax Big Tech back in March. New details regarding this initiative are now emerging.
The digital ministry announced that the development of the draft bill will progress “through the end of the year.” Once completed, it will be subjected to public consultation. Depending on the legislative timeline, the tax could be implemented as early as 2027.
This tax will target companies with global revenues exceeding €750 million, focusing on platforms such as marketplaces, social media, ride-sharing apps, and those involved in personalized advertising or user data sales.
However, services providing mere access to content—like gaming platforms or payment interfaces—will be exempt, along with financial services and direct online sales by retail companies.
Companies will be required to report revenues generated within Poland, based on reasonable assumptions regarding user residency, such as through their IP addresses.
The ministry estimates that the tax could yield approximately €470 million in its first year, with projections for continuous growth thereafter.
Notably, this proposal resembles the European Commission’s 2018 draft for an EU-wide digital tax intended to benefit national treasuries, which was ultimately abandoned due to disagreements among member states.
The Commission has also considered a digital tax to help repay the EU’s recovery debts from the Covid-19 pandemic but recently shifted towards advocating for a broader EU-wide tax on large corporations instead.
