These sorts of things would be a lot more defensible if they had them apply to all companies operating in Poland rather than only companies "making over €1 billion globally and more than $6.79 million in Poland." That's just using foreign companies as a piggy bank.
If it's good enough for American companies it should be good enough for Polish ones too.
Well it is an imperfect solution, and It’s most likely intended to tax multinationals that tends to revenue shift ( aka 99% American firms).
Most other firms are already taxes locally because most nations don’t tax companies profits made from abroad. And the polish firms are also already taxed.
And who is paying for the tax at the end?
Think sales tax. 🥲
lol, everyone pays VAT tax already. This is corporate tax
The amount of taxes companies pay compared to average employee is laughable. What EU should do in general is to apply flat rate as a base and then brackets where you can use creative accounting but the flat rate wouldn't be touched. If we had income as Apple (for example) as employees we would pay around 55% or so in taxes and yet Apple does single digits (i believe).
Tax system shouldn't reward the rich and creative whilst punishing 'normal' people (mostly middle class gets hit the hardest)
Europe has far fewer and simpler tax system and brackets than the U.S. and EU do not have tax authority, its exclusive mwmberstate territory just like this law Poland implemented.
The issue with creative accounting, aka revenue shifting is largely an American problem because of your global taxation regime. It’s very hard when **Apple daughter company A** in Poland, pays **Apple daughter company B** in Ireland close to full price with minimal margins to cover local running costs close to zero profits, to then itself pay **Apple inc ** in the U.S. full price so that they make again little to no profits.
Apple might have 1 billion in profits in Poland, but they revenue shifting it so that it appears that they have 1million in profits. Yet despite the corporate taxrate is 20% it only affects the 1 million instead of the full 1 billion. This 3% revenue tax is intended to capture this lost revenue
Another European tax and penalty on top of a thousand European taxes and penalties.
None of it improves competition. It discourages competition and that’s why the EU and UK’s tech sector collapsed and never made a comeback.
Remember when they fined the hell out of Microsoft and then Microsoft just passed the costs on to consumers and became an even bigger monopoly. Because it discouraged anyone from trying to become a successful competitor because most start ups and mid size companies can’t afford long court cases and endless penalties.
Lol Europe has simpler and fewer tax laws and brackets than the U.S.
and nobody is discouraged from becoming a big firm and make more money. And this absolutely encourages competition, it’s just discriminatory to non polish companies or large multinationals…
Microsoft being fined for breaking the law is their own fault and had zero relevance to them becoming a bigger dominant firm.
In a globalized economy it’s wasteful to copy and do the same things when someone else can do it better.
EU needs the EU inc initiative but more aggressively implemented.
Is this a time when EU regulators will wait until something is in place and then go, “No, we don’t like that?” They waited for YEARS after Ireland’s actions to say, “Took us awhile, but we don’t like what you’re doing there.”
Eu regulators didn’t wait years, you can’t prosecute something that you’re not aware of. And there’s nothing wrong with this revenue tax legally.
