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Tax is paid on profit, profit happens where Airbnb choose to make it happen. Same old same.
by cjrp 3y ago
Tax is paid on profit, profit happens where Airbnb choose to make it happen. Same old same.
- yladiz 3y ago> Tax is paid on profit In this case, the tax is paid on the revenue that the landlord makes and Airbnb is supposed to withhold it and pay it to the state. Airbnb being profitable or not is irrelevant.
- Ekaros 3y agoIncome tax is example of tax not paid on profit. And Italy has rent on gross revenue of rental properties. Which the payment processing party that is Airbnb should collect and pay.
- danieldisu 3y agoThere are many taxes that are not paid on profit... VAT/sales taxes, property taxes and a big etc ABNB creates externalities to the countries where it operates (increase rent prices), so it would make sense to tax them because of it. And if they don't like the tax, they are free to stop operating in that country ;)
- seydor 3y agoAirbnb already collects (and i presume pays) VAT so it's not like they can pretend they don't know where they are operating.
- wodenokoto 3y agoVAT doesn't have anything to do with profit. A typical setup is some variation of National subsidiary rakes in money, but has to pay main office in Cayman Island even more in licensing fees for the brand. So national subsidiary is running in negative, and doesn't pay any taxes. Parent company received all the money in Tax haven.
- true_religion 3y agoWe need brand importation taxes to foster local brands by ensuring when you rent the brand name of a foreign company then it will cost you more.
- gpderetta 3y agothat's irrelevant with this issue though. This is not about Airbnb not paying tax for its own profit, but about Airbnb failing to withhold tax on the gross rent it collects on behalf of landlords, which is required to do legally.
- andrepd 3y agoCapital is mobile and the tax regime is advantageous. For workers... the converse.
- qwytw 3y agoThis is not a tax AirBnb is supposed to pay, the landlords have to pay it, AirBnb is just supposed to withhold it and transfer it to the government. They chose not to do it to make their platform more competitive with traditional hotels etc, they were able to pocket a significant proportion of it through fees etc. but most of the money went to landlords and clients.