Poland 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.”

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.

So again, while the text leaves plenty of room for interpretation, the language suggests that services such as the App Store, Apple TV, Apple Music, Apple Books, Apple Podcasts, and Apple’s growing ad business could fall under the new law.

Finally, while Apple is far from the only company that would likely be affected by the law, there are a few requirements that would narrow its scope. If approved, it will only apply to companies with more than 1 billion euros (roughly US$ 1.16 billion) in global revenue, and more than 25 million zlotys (roughly US$6.8 million) in domestic revenue in the previous reporting period.

Apple has yet to comment on the draft law.

Source: 9to5mac