Poland's digital services tax targeting 25 million businesses faces strong opposition from U.S. companies

Regarding Poland’s attempt to introduce a digital services tax, major U.S. technology companies are strongly opposing it. This new tax system targets over 25 million companies worldwide with annual revenues exceeding 1 billion euros, and plans to impose a 3% tax on digital platform companies, particularly those involved in advertising sales and user data processing.

Details of Poland’s Proposed Digital Tax Policy

According to a recent report by Jin10, the public consultation period for this proposed tax system will begin early this week. The policy’s eligibility criteria are strict, applying to companies with reported revenues of at least 25 million zloty (approximately 7 million USD) within Poland. Digital platform businesses engaged in advertising sales, user data processing, and online transaction mediation are expected to be taxed at a maximum rate of 3%.

Warnings from U.S. Investors: $60 Billion in Assets at Risk

The impact of U.S. companies’ investments on the Polish economy is immense. Marta Paurak, head of legal and public policy at the U.S. Chamber of Commerce in Poland, pointed out, “This policy proposal underestimates the role of U.S. investors who have contributed to the Polish economy for many years.” In fact, U.S. companies have invested assets totaling $60 billion in Poland, and the introduction of a tax system centered on over 25 million digital companies could jeopardize the trust built between the two countries so far.

Paurak continued, “This policy could send a message to American investors operating across various industries to adopt a cautious stance toward the Polish market,” calling for a reconsideration of the policy.

Potential Escalation into New Transatlantic Trade Tensions

The Trump administration has already warned of retaliatory measures against the European Union’s taxation of U.S. tech companies. Poland’s digital services tax proposal could serve as a new flashpoint, adding to existing trade tensions between the U.S. and Europe. Especially following recent disputes over trade and Greenland issues, concerns are rising that relations across the Atlantic could become even more complicated.

The new tax system targeting over 25 million companies that Poland is pushing forward is not merely a revenue-raising measure but a significant policy decision with direct implications for international relations with the United States.