Airbnb owners and other rental brokers achieved over NOK 6 billion in rental income last year. The numbers show how important it was to introduce the reporting obligation.
- Even with the reduced tourism activity that occurred in 2020 and 2021 due to major closures, we can see the quotas are substantial. Revenues would likely be significantly higher under normal circumstances. Revenues are expected to increase significantly as tourist activity picks up again in 2022 and 2023, says Kristin Krohn Devold, NHO Reiseliv chief executive.
- The numbers show how important it was to introduce the reporting obligation. Previously, we had not had an overview of the extent of this type of lease, and we were concerned that large taxable amounts were beyond the radar of the authorities. Now the authorities can collect the tax they are owed. We have a fair tax relationship between traditional actors and those in the collaborative economy, continues Krohn Devold.
From January 1, 2020, administration tax introduced an obligation to report for companies intermediating in real estate rental. This means Airbnb and others companies are obliged to report their income to the tax authorities every landlord.
- We obtain more and more information from third parties, including short-term rental companies. It gives us a better insight into how many people have rental income. It also makes it easier to fill it in correctly in the tax return - says Elisabeth Fischer, director of the department in the tax administration.
- The sharing economy is growing and we need to be future-oriented to find good solutions. The reporting obligation is a good example of this and we are delighted that it does exist, continues Fischer.
Over 6 billion in rental income
NHO Reiseliv, through the Tax Administration, has access to an overview of how rental income Airbnb owners and others have achieved since the reporting obligation was introduced:
- In 2020, to administration over NOK 5,3 billion was reported for tax purposes rental income. In 2021, it increased to over NOK 6,1 billion.
- The number of intermediaries required to provide information has increased from 57 in 2020 to 68 in 2021.
- Airbnb has grown, also in Norway. The development is positive as guests have more choice, but newcomers have to pay taxes on par with the traditional hotel market. Now the Norwegian tax authorities have finally received a scope overhaul, and we hope that more Airbnb rental tax revenues could help strengthen the budgets of tourist municipalities in the future, says NHO director Reiseliv.
Overall, we see a big increase in the number of people reporting and an increase in the amount they report on their tax return. We have also seen this in the case of short-term rental intermediaries, concludes Elisabeth Fischer.
Source: skatteetaten
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