Introducing a digital tax is the only viable option for global technology companies to start paying taxes honestly in Poland, say representatives of the Instrat Foundation. The foundation prepared a report on the matter commissioned by the Ministry of Digital Affairs.
On Wednesday, the Ministry of Digital Affairs presented its proposal for the introduction of a digital tax in Poland.
According to the Instrat Foundation, the European Union has been unable to reach an agreement on a digital tax for years, so it's best to opt for a national solution. As indicated, the new levy is intended to ensure that big tech companies start paying taxes on digital services honestly and to tighten the tax system.
“User data, Polish infrastructure, and the Polish market generate billions in revenue for global tech giants. The problem is that taxes from these profits do not end up in the Polish budget, while domestic companies pay them,” it noted.
The Foundation recommended to the Ministry of Digital Affairs to introduce a 3% or 6% tax on revenues from digital services, such as targeted digital advertising (provided by search service providers or social media platforms), the transmission of user data, and the provision of digital interfaces (e.g., platforms intermediating mobility and food delivery services, or marketplace platforms).
According to the foundation, the benefits of introducing the digital tax include additional revenue for the state budget – approximately PLN 1.7 billion at a 3% rate in the first year of the tax's implementation (2027). The money could be used for research and development, infrastructure, and public education, for example. The tax could also motivate big tech companies to locate their operations in Poland and contribute to a level playing field between companies that pay their fair share in Poland and international giants, the report added. The tax could also help companies, for example from China, avoid taxation.
It was also noted that currently, big tech companies do not finance the maintenance of digital infrastructure , as does, for example, the telecommunications sector, and the introduction of a tariff would ensure a fair share of technology companies in the costs of maintaining and developing the infrastructure.
During Wednesday's meeting with industry and non-governmental organizations, the Ministry of Digital Affairs presented a proposal for a digital tax in Poland, which would be paid by companies with global, consolidated revenues above EUR 750 million.
At the meeting, representatives of the Instrat Foundation presented a report containing an overview of solutions already in place around the world and recommendations for introducing this type of tax in Poland based on 3%, 4.5%, and 6%. According to PAP Biznes, the ministry favors the so-called broad variant presented in the report, with a tax rate of 3%, which would guarantee PLN 1.7 billion in budget revenues in 2027, over PLN 2 billion in 2028, PLN 2.5 billion in 2029, and over PLN 3 billion in 2030.
The opinions of Wednesday's meeting participants will be taken into account in developing the proposal, which will be translated into a draft law and subject to further consultations, the Ministry of Digital Affairs declared. Deputy Prime Minister and Minister of Digital Affairs Krzysztof Gawkowski announced that the ministry aims to present the draft law by the end of the year.
In the first half of July, the Politico website reported that the European Commission had decided to withdraw its plans to impose a tax on the largest digital companies. According to the website, the digital tax the European Commission was supposed to be working on has been removed from the list of proposed taxes for the next seven-year EU financial framework.
Gawkowski first announced the introduction of a digital tax in Poland in March of this year. Tom Rose, Donald Trump's nominee for the US ambassador to Poland, commented on the news. In a post on the X website, he threatened that Trump would retaliate against the introduction of the digital tax. According to Gawkowski, the introduction of the digital tax will not spark a trade war with the US and President Donald Trump.
Finance Minister Andrzej Domański announced in March that his ministry was not working on introducing a digital tax. He also noted that tax policy in the country is shaped by the Ministry of Finance.
Digital taxes are in force in countries such as the UK (at 2%), Italy, France and Spain (3%), Austria (5%), Hungary and Turkey (7.5%), Japan (10%) and Canada (3%). Countries that have not implemented them include Finland, Sweden, Germany, Ireland, the Netherlands, the US and China. (PAP)
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