Poland is moving forward with a plan to impose a 3% Digital Services Tax on large technology companies that generate more than €1 billion in global revenue annually. The tax targets firms that provide digital services to Polish users, aiming to capture revenue that often escapes traditional corporate tax systems.
Who the tax would hit
The 3% levy applies to companies with global annual revenue exceeding €1 billion. That threshold covers the world's largest digital platforms — search engines, social media networks, online marketplaces, and streaming services. The government has not yet specified which specific services will be taxed or how revenue from Polish users will be calculated. Those details are expected in the draft legislation.
Why the government is acting
The plan is part of a broader effort to ensure tech giants contribute more to the national budget. Digital companies often have significant user bases in Poland but maintain little physical presence there, allowing them to book profits in lower-tax jurisdictions. The tax is designed to capture a share of the value those companies generate from Polish users.
Next steps for the proposal
The proposal still requires approval from the Polish parliament. The government has not set a timeline for introducing the bill or for the tax to take effect. Once legislation is drafted, it will need to define the tax base, collection mechanism, and any exemptions. The tax would apply to revenue earned after the law takes effect.
The Polish move comes as the European Union and the OECD continue to debate broader digital tax reforms. Poland's unilateral approach could add pressure for a coordinated international solution, but for now the government is pushing ahead with its own plan.
