New Digital Tax: Gawkowski targets large techs

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Minister of Digitalism Krzysztof Gawkowski (second to right) along with Prime Minister Donald Tuski and another Deputy Prime Ministers during the session of the Sejm in Warsaw (Photo by WOJTEK RADWANSKI/AFP via Getty Images)Getty Images

Deputy Prime Minister Krzysztof Gawkowski announced the introduction of a digital taxation aimed at abroad technology companies. "We know who we're going to for money and they're not Polish companies" - said the Minister of Digitalization in an interview with the "Journal of Legal Newspapers".

The Prime Minister gave Gawkowski a green light to work on the bill to be ready this year. According to erstwhile reports money.pl, the taxation is to cover companies with global revenues of more than EUR 750 million and to begin to apply from 2027.

Billions of gold from the fresh tribute

The Ministry of Digital Affairs estimates the revenues from the digital taxation at PLN 1.7 billion per year at a rate of 3%. At the rate of 4.5% it would be 2.6 billion PLN, and at 6 percent - 3.4 billion PLN.

"The consultation gathering offered proposals from 3% to 15%. For me, this 3 percent is simply a good starting field" - Gawkowski noted. The Minister stressed that the rate of 2% would be besides low to effectively support the state budget.

Protection of Polish enterprises

Polish companies paying CIT will receive deductions and reliefs, so that they will not pay more than currently. "This way, Allegro will not pay more than another companies paying CIT in Poland" - explained the Deputy Prime Minister.

Most of the taxation gross is to come from the e-commerce sector, where abroad platforms dominate. Gawkowski described the planned taxation as a consequence to "digital colonialism", arguing that Poland has a "digital income deficit".

American Warnings

The introduction of the taxation may make tensions in relations with the United States. Thomas Rose, nominated as US Ambassador to Poland, warned earlier about Donald Trump's "retaliation efforts".

"Call off the taxation to avoid consequences" - wrote Rose on platform X, suggesting possible US sanctions. Despite warnings, the government continues to prepare for a fresh tribute.

International precedents

Poland will join countries that have already introduced a digital tax. akin solutions apply in France, Spain, large Britain, Italy, Japan and Turkey, usually at a level of 2-3 percent.

Gawkowski estimated that countries with a digital taxation "are already ahead by EUR 20-30 billion". The Minister besides plans to amend the Act on the National Cybersecurity System, which is scheduled to hit the government in August.

Sources used: "Journal of Legal Newspapers", "money.pl" Note: This article has been edited with the aid of Artificial Intelligence.

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