The Ministry of Digital Affairs is working on introducing a digital services tax aimed at leveling the playing field between global players and Polish and European businesses. In July this year, a trade agreement was reached between the European Union and the United States; however, no provision for taxing digital platforms was included. According to Polish Members of the European Parliament, decisions related to such a tax should be coordinated among EU member states while also taking into account relations with the U.S., particularly in the context of defense cooperation.
– “If decisions regarding the taxation of large digital platforms are to be made, they should be taken in coordination between EU countries, but also with regard to our transatlantic interests. Such a move could trigger a symmetrical response in another area of trade linked to EU–U.S. relations,” said Piotr Müller, MEP from the Law and Justice party (PiS), in an interview with Newseria.
Security Ties with the U.S.
According to a report by the Instrat Foundation, Taxation of Digital Activities, prepared for the Ministry of Digital Affairs and serving as the basis for the proposal, one of the biggest risks of introducing a digital tax is jeopardizing relations with the United States—Poland’s key ally.
– “There is the issue of security, namely America’s involvement in protecting NATO’s eastern flank and the presence of U.S. troops in Poland. That is why this topic should be discussed comprehensively. We should consider how to fairly tax companies operating in Europe while also weighing broader security interests, particularly those of Poland,” Müller explained.
According to official U.S. State Department data, around 10,000 American troops are currently stationed in Poland. U.S. forces also command NATO’s Enhanced Forward Presence battlegroup in the country and deploy a rotational Armored Brigade Combat Team under Operation Atlantic Resolve, financed by the European Deterrence Initiative.
– “I would like this policy to be coordinated, because only then will it bring results. Ultimately, I also want tax revenues to go into national budgets, not the EU budget. In Brussels and Strasbourg there is a growing trend to direct all new types of levies to the EU budget. I believe we must safeguard states’ tax autonomy. Membership contributions can go to the EU budget, but expanding its independent revenue sources will only create future problems, triggering new disputes over how those funds should be distributed among member states,” Müller added.
Work on the Polish Digital Tax
On August 13, 2025, the Ministry of Digital Affairs held a meeting with a broad representation of industry and non-governmental organizations to discuss the model for a Polish digital tax, under development for several months. Proposed measures include taxing digital interface services, targeted digital advertising (profiling), and data transfer services. Based on this model, a draft law will be prepared and then put to broad consultation.
– “Introducing a digital tax in Poland is a very complex process, partly because we have strategic defense interests and need to discuss what matters most to us right now,” Müller said. – “Is it a clear signal from the U.S. about maintaining troops in Poland, or is it taxing American corporations? Or perhaps it’s finding a compromise where we increase U.S. troop presence in Poland and, in exchange, refrain from imposing certain levies? It’s worth being open and clear about our expectations in this regard.”
EU–U.S. Trade Agreement
On July 27, 2025, the European Union and the United States reached an agreement on a framework for fair and balanced trade. One of its most important provisions is a 15% tariff on most goods exported from the EU to the U.S.
– “The trade agreement currently being processed between the European Commission and the U.S. does not include such a tax. Since both sides have already agreed on the terms, reopening this issue could cause further international disruptions,” Müller noted. – “However, this does not change the fact that we must find ways to ensure multinational corporations pay fair taxes in Europe and in individual EU countries. This doesn’t necessarily have to be through a digital tax—it could also be achieved by tightening oversight of tax residency for companies providing services.”
Global Digital Companies and Tax Residency
According to the Instrat report, most global digital firms do not have registered subsidiaries in Poland. Their services are usually provided through entities registered in other European countries, such as Ireland or the Netherlands, or directly in the United States. Moreover, the profit margins reported by the entities registered in Poland are significantly lower than the figures shown in the global financial statements of these firms. This suggests issues such as the use of transfer pricing to inflate costs and thereby reduce corporate tax liabilities.
– “I am not against healthy competition within the European Union. In terms of tax policy, countries should also compete with one another—these are good market mechanisms. But if a product or service is provided in a given country, it is only fair that the revenues should flow there, and not virtually to another jurisdiction that acts as a tax haven and has nothing to do with the delivery of that service or product,” said Müller.
