Thursday, March 26, 2026

Poland begins work on digital services tax bill, risking US fury

Poland begins work on digital services tax bill, risking US fury
/ Iwona Castiello d'Antonio - UnsplashFacebook

By Wojceich Kosc in Warsaw March 25, 2026

Poland’s government will begin work on legislation introducing a digital services tax, Deputy Prime Minister and Minister of Digital Affairs Krzysztof Gawkowski said on March 24, in a move that could heighten tensions with the United States.

Gawkowski said in a post on social media platform X that the proposed bill aims to ensure fair competition between global technology firms and domestic companies, while boosting public revenues and funding for digital development.

“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,” Gawkowski said.

The proposal would impose a levy of up to 3% on revenues from selected digital services, including online advertising, user platforms and data trading. It would apply only to companies with annual revenues exceeding €1bn globally and PLN25mn (€5.85mn) in Poland.

The plan builds on an earlier proposal announced in 2025, when Poland’s Ministry of Digital Affairs outlined a framework targeting large multinational firms. The levy would cover activities such as personalised advertising, online marketplaces and the sale of user data, while excluding digital content streaming, telecommunications, and financial services.

Digital services taxes have been introduced in several countries, including the United Kingdom at 2% and France, Italy and Spain at 3%, often drawing criticism from Washington. The measures typically affect large US-based companies such as Alphabet, which operates Google, Meta, which operates Facebook and Instagram, as well as Apple and Amazon.

The issue has been a longstanding source of friction in transatlantic trade relations. When Poland first outlined its plans in 2025, US Ambassador to Poland Tom Rose described the proposal as “self-destructive” and warned it could damage bilateral ties. 

The initiative follows a separate proposal to restrict social media access for children under 15, potentially adding to pressure on global technology firms operating in Poland.

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