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> why is AirBnB responsible for withholding taxes from people who are not their employees Because apparently the law says so? Rent income is already taxed at a
by gpderetta 3y ago
> why is AirBnB responsible for withholding taxes from people who are not their employees
Because apparently the law says so? Rent income is already taxed at a flat rate (at a relatively generous 21%) as opposed of using the marginal tax rate.
Also VAT and sale taxes are commonly withheld at payment. In UK it was the rule until a few years ago for banks to withhold tax on interest income.
- rsynnott 3y ago> In UK it was the rule until a few years ago for banks to withhold tax on interest income. Huh, is it not anymore? I thought virtually everywhere did that; I'd expect compliance to be _extremely_ low where it's not done.
- lotsofpulp 3y agoIt is optional in the US. It gets reported to the tax agencies anyway, so the government will easily know if you did or did not pay.
- gpderetta 3y agoIIRC it changed a few years ago: I think the interest personal allowance became more generous, so most people in practice don't pay tax on interest (especially with interests being so low in the last decade), and those that do, have very different marginal rates, so it made less sense to be paid at source. Banks share information with HMRC, so I expect that compliance is still high, but it is a bit annoying that our tax returns are not prefilled with this info.
- Liquid_Fire 3y agoThey will report your income to the tax agency, but they don't withhold taxes themselves.