Poland is moving forward with proposals to impose a 3% tax on large digital companies, aiming to generate funds to bolster its domestic technology and media sectors, according to Euractiv.
The initiative emerges as global negotiations at the OECD level continue to adapt taxation systems to the digital economy, with several European nations independently targeting predominantly US-based tech giants.
The Digital Ministry confirmed to Euractiv that work on the draft bill will “continue through the end of the year,” followed by public consultation. Subject to legislative approval, the levy could take effect as early as 2027. The tax will apply to corporations generating global revenues exceeding €750 million annually.
The ministry specified that the tax will impact platforms including online marketplaces, social media networks, ride-sharing applications, and businesses reliant on personalised advertising or user data sales. Exemptions will apply to services providing pure content access (such as games), interfaces (like payment or communications platforms), financial services, and direct sales through a company’s proprietary website.
Affected firms must report revenues linked to Polish users, determined by indicators such as IP addresses allowing them to “reasonably assume” residency. The government projects this “modest” 3% charge could yield up to €470 million in its inaugural year, with revenues expected to grow thereafter.
These efforts occur amid vocal opposition from US President Donald Trump’s administration, which threatened retaliatory tariffs. Despite this pushback, Poland’s government, led by Donald Tusk, affirmed its commitment to the tax in March, joining other European nations implementing similar measures.
The Polish proposal notably mirrors the European Commission’s abandoned 2018 draft for an EU-wide digital tax, which sought to channel funds into national budgets but foundered due to member state disagreements. While the Commission recently floated a broader tax on large companies to repay COVID-19 recovery debts, Poland’s approach remains focused specifically on digital services.
