GoKawiilPoland is reportedly moving forward with a proposal to tax certain digital services revenue at up to 3%, potentially affecting companies like Apple. Here are the details.
New tax proposal could apply to multiple Apple services
Last year, Poland’s Ministry of Digital Affairs proposed a new law that would tax the revenue generated from certain digital services in the country.
As Reuters reported at the time, the move was harshly criticized by U.S. ambassador to Poland Tom Rose, who referred to it in a post on X as “a self destructive tax that will only hurt Poland and its relations w/USA.”
Now, also according to Reuters, the country has signaled that it will start working on the bill, “setting up a potential clash with key ally the United States.”
According to the draft, revenue from certain digital services provided in Poland would be taxed at up to 3%, in what Poland’s Deputy Prime Minister and Minister of Digital Affairs, Krzysztof Gawkowski, described as an effort to create a more level playing field between domestic and foreign companies:
“Today, competition in the digital market in Poland is distorted. Companies that pay taxes on their activities in Poland are in a worse position than those that provide digital services within our country from abroad. This reduces the competitiveness of domestic entities, limits our digital sovereignty, and significantly reduces state budget revenues that could be reinvested in building our country’s technological potential. The economy is increasingly shifting into the digital sphere, and over time these inequalities would only deepen.”
As is often the case with proposals like this, the draft law uses broad language that leaves room for interpretation about what exactly would fall under it.
From the draft law:
The draft proposes introducing a compensatory tax on services provided within the territory of the Republic of Poland consisting of: Placing targeted advertising on a digital interface aimed at users of that interface;
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