How much Airbnb will finally pay to the Revenue Agency
Agreement between Airbnb and the Revenue Agency. The short-term rental platform will pay the Treasury 576 million euros in relation to the fiscal years from 2017 to 2021 to close the ongoing dispute. All the details
Airbnb has concluded an agreement with the Revenue Agency regarding the withholding tax on the income of non-professional hosts deriving from short-term rentals ("dry tax") in relation to the tax years from 2017 to 2021, for a total payment of 576 million.
Airbnb will not seek to recover withholding taxes from hosts for this period.
AIRBNB STATEMENTS
“We are also continuing constructive discussions with the authorities regarding the 2022-2023 period. Italy is an important market for Airbnb,” it explains in a note.
“Today's agreement – continues Airbnb – means that we can focus on continuing our collaboration with the Italian authorities on taxes, rules for short-term rentals and sustainable tourism, for the benefit of hosts and guests. There are thousands of hosts in Italy. Over three-quarters of them only have one ad; the typical host earned just over 3.5001 euros last year. About two-thirds (59%) said the income they earn from hosting helps them make ends meet. 15% say they work in healthcare, education or public administration.”
The company adds that “most of the hosts on Airbnb in Italy are ordinary people who rely on the platform to supplement their family income. We hope that the agreement with the Revenue Agency and the recent regulatory changes can clarify the rules regarding short-term rentals for the years to come".
WHAT THE GOVERNMENT DID
Airbnb adds that “in October 2023, the Italian Government presented the budget law for 2024 which, in its current version, clarifies how platforms should withhold income taxes from non-professional hosts in Italy in the future. We have welcomed this regulatory proposal and are preparing to comply with it, by introducing a mechanism for withholding and remitting relevant hosts' income tax to the Revenue Agency."
THE EUROPEAN REGULATION DAC7
Airbnb is also working to comply with DAC7, the European framework regulation on the transmission of tax data by digital platforms. “These rules – explains Airbnb – are designed to allow national authorities to collect the taxes due while supporting a coherent and standardized data transmission system. We have already informed Italian hosts how these changes will impact their business through Airbnb and will continue to ask them for DAC7 information before it is shared with the Tax Authority in Ireland (where Airbnb Ireland is headquartered) in January 2024, and subsequently to the Revenue Agency".
THE RULES ON SHORT RENTALS
Airbnb says it also welcomes progress on rules for short-term rentals , including the creation of a national registration system in Italy and the European data-sharing framework
“These advances will make it easier for historic centers such as those of Venice and Florence to understand who hosts and for how long, allowing the development of public policies proportionate to the phenomenon. The company is determined to collaborate with the Italian authorities for the success of these rules”, concludes the note from the platform.
THE AGREEMENT BETWEEN AIRBNB AND THE REVENUE AGENCY
Airbnb signs the assessment with the Revenue Agency to close the findings relating to the tax investigations conducted by the Guardia di Finanza and coordinated by the Milan Public Prosecutor's Office, relating to the years 2017-2021.
In particular, Airbnb Ireland Unlimited Company – reports ANSA – will pay a total of 576 million euros, of which approximately 353 million for withholding taxes due and not paid, 174 million as administrative sanctions for violations committed and 49 million interests. The amount was determined following the reconstruction of the tax base on which the company should have applied the 21% withholding tax, as provided for by Legislative Decree no. 50/2017 (art. 4), with specific reference to the period from 1 June 2017 to 31 December 2021.
This is a machine translation from Italian language of a post published on Start Magazine at the URL https://www.startmag.it/economia/accordo-airbnb-agenzia-entrate/ on Wed, 13 Dec 2023 14:04:52 +0000.