Airbnb will report homeowners’ income to tax authorities in Denmark
Denmark will require Airbnb to automatically report income tax of homeowners to tax authorities, making it the first country to deal with tax evasion linked to the service.
This agreement, which still needs to be approved in the Danish parliament, follows a cap that was set on how many days homeowners could rent out their homes in Denmark.
The limit will be set to 70 days per year in which a homeowner may rent out his or her home via Airbnb and owners will be given a tax-free allowance of 40,000 Danish kroner (£4,688) per year.
Read more: Airbnb just slashed the up front cost of booking a place to stay
Karsten Lauritzen, the Danish tax minister, said: “We want a flourishing sharing economy in Denmark where it is possible for renters to earn a reasonable tax-free amount on making their property available.”
However, he continued: “But it is must be under the condition that tax payments are in order.
Airbnb tax evasion has become a problem in several countries and the company has also been accused pushing up house prices in larger cities and taking business from hotels.
Patrick Robinson, director of public policy EMEA at Airbnb, said in a company statement: “We believe the proposed rules are right for Denmark and we are committed to ensuring hosts on Airbnb can benefit from these innovative and forward-thinking rules.”
“The progressive attitude of Denmark is an example to the world and demonstrates how positive results can be achieved when policymakers and Airbnb work together on the shared goals of making cities better places to live, work and visit.”
According to Airbnb, 30,000 people in Denmark rented out their homes last year to around 900,000 visitors.
Read more: These are the most profitable places to be an Airbnb host in London
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