Dariusz Standerski told the money.pl news website that work on the bill was proceeding according to schedule and that the new tax could raise up to PLN 3 billion (EUR 700 million, USD 800 million) annually for public coffers.
The proposal would impose a tax of up to 3 percent on revenue from selected digital services provided in Poland.
The tax would apply to companies or consolidated corporate groups with global annual revenue above EUR 1 billion and taxable revenue in Poland exceeding PLN 25 million (about EUR 5.8 million, USD 6.6 million).
The location of a company’s headquarters or its tax residence would not affect whether it was covered.
Standerski said the government would begin its formal consultation, coordination and review process before the end of July.
Interested parties would have time to present their positions, he said.
"This is too important a project to rush,” he told money.pl.
He said the government wanted a measure that would raise revenue without creating excessive administrative burdens for businesses.
The bill was added to the government’s legislative agenda in March. Its formal title refers to a compensatory tax on certain services, but it is generally described as a digital tax.
The proposal would cover revenue from targeted online advertising. These advertisements are selected for individual users based on information collected about them.
It would also cover services that allow users to interact with one another or buy and sell goods and services.
These include social media networks and online marketplaces, which bring together multiple sellers and customers on a single platform.
Companies selling data about users would also be covered.
The Ministry of Digital Affairs estimates that the tax could raise PLN 1.7 billion during its first full year. Revenue could increase to about PLN 2 billion in the second year and reach PLN 3 billion in later years.
Standerski said the bill had government support because it had been accepted for inclusion in the legislative agenda by a committee that included the finance minister.
He added that the Ministry of Digital Affairs remained open to the finance ministry's proposals on collecting and enforcing the tax.
New Polish tax to hit US big tech
The planned measure is likely to affect major American technology companies, although Standerski said it was not directed against businesses from any particular country.
"The digital tax does not concern any specific state," he said. "But it is a fact that large companies from the United States will also pay the new levy."
Standerski said the tax would primarily affect highly profitable companies with little or no physical presence in Poland.
Large digital groups can provide services to millions of users in a country without maintaining the offices, stores or other physical operations traditionally used to determine where corporate taxes are due.
European governments have debated digital taxes as a way to adapt tax rules to that business model.
The bill will require approval by the Cabinet before it can be submitted to parliament. It would then need to pass the Sejm, Poland's lower house, and the Senate, the upper house, before being sent to the president for signing into law.
(rt/gs)
Source: PAP