Polish government advances plan for 3% levy on digital companies

Poland is moving forward with a 3% Digital Services Tax aimed squarely at the world’s largest tech companies. The Finance Ministry confirmed the proposal’s advancement in May 2026, with draft legislation expected by the end of September.

The levy targets companies pulling in more than €1 billion in global revenue and at least 25 million PLN (roughly $6-7 million) from Polish operations. That threshold effectively narrows the crosshairs to major US and Chinese tech giants.

What the tax actually covers

The DST focuses on three specific revenue streams: online advertising, social media platforms, and the monetization of user data. Streaming services and direct sales would be exempt under the current proposal.

Poland already has a 1.5% DST on audiovisual media services, established back in 2020. The new levy essentially doubles down on that approach and broadens the scope considerably. Digital Affairs Minister Krzysztof Gawkowski officially added the initiative to the legislative agenda in March 2026, following public consultations that began in February.

The stated goal is to generate funding to support local tech development and level the playing field for Polish digital startups that compete against platforms with effectively unlimited resources.

Why crypto and fintech investors should care

Tax analysts have flagged concerns about double taxation. A company already paying corporate tax in Poland could face the DST on top of that, since the levy targets gross revenue rather than profit. For high-volume, low-margin digital businesses, a 3% gross revenue tax can bite harder than it sounds. A company operating on 10% margins effectively sees a third of its profit disappear before corporate taxes even enter the picture.

The geopolitical dimension

The United States has historically pushed back against digital services taxes, viewing them as discriminatory measures targeting American companies. The US previously threatened retaliatory tariffs against France over its DST before the two countries reached an uneasy truce tied to OECD negotiations for a global minimum tax framework. As of May 2026, the Finance Ministry has expressed clear intentions to proceed despite US criticism.

The exemption framework will be critical. If regulated financial services remain carved out, crypto companies operating under MiCA licenses might dodge this particular bullet. The legislation’s final language on what constitutes a “digital service” versus a “financial service” will likely determine whether this stays a big tech problem or becomes a broader digital economy issue.

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