Airbnb will report homeowners’ income in Denmark to Danish tax authorities under a new agreement to crack down on tax evasion.
Danish Tax Minister Karsten Lauritzen said the agreement will ensure that people renting out rooms or properties or Airbnb pay their fair share in taxes.
Denmark had 30,000 renters using the platform last year and over 900,000 visiting users. On average, hosts in Denmark earned 15,500 kroner by renting their space for 23 nights.
“I’m not always a happy tax minister, but I am today,” Lauritzen said on Thursday. “This is how we will get the sharing economy to grow while also ensuring that taxes are paid.”
Patrick Robinson, director of public policy Emea at Airbnb, said: “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.”
Denmark isn’t alone in wanting more transparency about users of the platform. The BBC reports that there are several other countries trying to rein in Airbnb tax evaders.
Earlier this week German authorities asked Airbnb to provide the country’s tax authority with information on users to track down tax evaders.
According to The Irish Times, Thomas Eigenthaler, the president of Germany’s Federal Taxpayers’ Association, said that Airbnb has been criticised in Germany over its alleged role in inflating housing shortages in urban areas as well as the failure of renters using the platform declaring extra income they earn.