Poland should be US's ally on digital tax - US ambassador

Marcin Obara/PAP

Poland and the US should work together with the OECD to develop a formula for the common system of a digital services tax, US Ambassador to Poland Georgette Mosbacher wrote in the Monday issue of Rzeczpospolita daily.

Mosbacher wrote that recently several European countries have either unilaterally introduced or are mulling a tax levied on international companies from the digital sector, the so-called digital services tax. According to her, such initiatives are targeted or have a disproportionate impact on leading US technology companies as well as are self-destructive by discouraging investment in technology and innovation.

In Mosbacher's view, the unilateral introduction of taxes on digital services can complicate ongoing multilateral negotiations.

She further wrote that the United States acknowledges that all companies, regardless of nationality or economic sector, should pay fair tax rates and therefore US companies were among the first to engage in negotiations with the Organisation for Economic Cooperation and Development (OECD) on more fair tax system.

The US ambassador also said she is convinced that Poland will be an ally of the United States in supporting the OECD in the process of modernising the global tax system.

In her opinion, ensuring that companies pay fair tax rates will be reassuring for taxpayers, will minimise administrative burdens, help avoid double taxation and ensure that investments in the 21st century digital economy continue to flow to Poland.