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Poland Moves to Draft Digital Services Tax on Big Tech

The plan risks a new dispute with Washington over taxes on large U.S. platforms.

Overview

  • Poland’s government, which announced the step Tuesday, will start work on a bill to tax revenue from selected digital services.
  • The reported draft caps the levy at up to 3% of revenue and limits it to firms with over €1 billion in global sales and more than 25 million zlotys in Poland.
  • Activities in scope include targeted ads, multi-sided platforms that connect users, and selling or licensing user data, which could touch Apple’s App Store and ads as well as services run by Alphabet, Meta and Amazon.
  • Deputy Prime Minister Krzysztof Gawkowski says the goal is fairer competition and more money for digitalisation, while U.S. ambassador Tom Rose earlier called the plan “self destructive.”
  • The proposal mirrors moves in parts of Europe and leaves room for exemptions, so companies are waiting to see how Poland defines and enforces the rules.