TAX Alert: Tax on the digital sector (parliamentary draft)
A draft parliamentary act to tax certain digital services and the Digital Technology Fund, has been drawn up and presented by the Koalicyjny Klub Lewicy (Left-Wing Coalition Club), and it is currently the subject of the consultation process. The draft version of the act includes, a new tax based on the Digital Services Tax model. A tax on digital services using the same model is also being considered by OECD and the European Commission.
Pursuant to the draft version of the act, the new tax will be applied to digital services provided in the territory of Poland and comprising:
- campaigns using profiled advertisements
- enabling the use of a multilateral digital interface, which mainly means conducting online transaction platforms where the users can exchange goods and services.
The taxpayers of the new tax will be the digital sector companies, regardless of the location of their registered offices, and the tax will be based on the revenues they generate on the provision of services in the territory of Poland. The proposed rate of this tax would amount to 7% of the taxation basis.
The authors also suggest a tax release for the entrepreneurs whose:
- consolidated gross revenues do not exceed EUR 750 million in the accounting period
- gross revenues on sale of services in Poland that do not exceed EUR 4 million
Although this is a parliament draft and not a government project, we recommend that you keep an eye on it in the future, in particular because it has been said in the media that the Ministry of Finance is also considering introducing a digital tax.
It should also be noted that the lack of action by the OECD and the European Commission on implementation of such tax, might prompt European Union member states decide to introduce the tax on their own.
We will regularly inform you about the issues connected with the implementation of the digital tax in Poland. Should you have any questions concerning the tax on digital services, do not hesitate to contact us.