WARSAW, March 24 (Reuters) - 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
Poland to Launch Digital Services Tax Targeting Major Tech Firms in 2025
Poland’s Digital Services Tax: Key Details and Implications
Government Announcement and International Tensions
WARSAW, March 24 (Reuters) - 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.
Background: European Digital Tax Initiatives
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.
U.S. Response to Poland’s Tax Plans
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.
Objectives and Structure of the Proposed Tax
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.
Ensuring Fair Competition
"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.
Tax Scope and Thresholds
Applicable Services and Companies
The bill assumes revenues from selected digital services, including online advertising, platforms connecting users, and data trading, would be taxed up to 3%, 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.
Related Regulatory Initiatives
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.
Currency Exchange Rates
($1 = 0.8625 euros)
($1 = 3.6845 zlotys)
Reporting Credits
(Reporting by Anna Wlodarczak-Semczuk; Editing by Ros Russell)
