A few years ago, the Digital Service Tax was rarely heard of in Europe. Now many EU countries have proposed, announced or already implemented some form of this tax type. Poland joined them in July 2020, when a payment to the Polish Film Institute equal to 1.5% of the revenue of streaming platforms from delivering content or for transmitting commercial messages (whichever figure is higher) was implemented. Now, Poland has gone one step further.
In February 2021, a draft of the legal act introducing the “advertising contribution” was published. Despite its name, its construction is based on the rules specific to the Digital Service Tax. Below we summarise our general assumptions.
Traditional ads
The tax liability is imposed on revenues in the tax year in the amount of:
- PLN 1,000,000 (roughly EUR 220,000) for broadcasting adverts on television, radio, displaying adverts at the cinema, and posting adverts on external storage,
- PLN 15,000,000 (roughly EUR 3,300,000) for press advertising.
The tax rate assumed in the project varies between 2% to 15% of the tax base depending on the advertised goods and sources of income.
Source WTS
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