Airbnb And Taxes

Airbnb to Report Homeowners' Income to Danish Tax Authorities - BBC

Excerpt from BBC

Airbnb will automatically report homeowners' income to tax authorities in Denmark under a landmark move.

It will make it easier to spot tax evasion by homeowners renting out rooms and properties via the site.

Danish tax minister Karsten Lauritzen said the country wants a "sharing economy" to flourish, but on condition taxes are paid.

The move - which needs clearance in parliament - comes as several countries try to rein in Airbnb tax evaders.

In addition to the issue of taxes, Airbnb is blamed for pushing up house prices in major cities and taking away business from hotels and B&B outlets.

The Denmark deal will also include limiting the number of days an owner may list a property to 70 a year. Owners will be given a tax-free allowance of up to 40,000 kroner (£4,690) a year.

"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," said Mr Lauritzen. "But it is under the condition that tax payments are in order."

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