Danes to be taxed for using AirBnB

The days of making an easy profit by loaning your apartment out while away on holiday appear to be numbered in Denmark, with parliament set to consider new rules for taxing earnings from services such as AirBnB.

Danes to be taxed for using AirBnB
File photo: Scanpix

Parliament appears to be in favour of forcing Danes to register all earnings made through shared economy schemes such as subletting property via AirBnB.

The proposal, which involves enforcing automatic registration of income through subleasing via services such as AirBnB, was presented by the left-wing Red-Green Alliance (Enhedslisten) party on Thursday.

“I’m a big fan of the shared economy, not least because it’s a key aspect of an environmentally friendly society. But shared economy-based businesses should not be a loophole for dodging tax,” the party’s tax spokesperson Rune Lund told TV2.

“This is extremely relevant, since we’re likely to see a significant increase in the shared economy in coming years,” added Lund.

Other examples of shared economy business include the private taxi app Uber, which has recently met with strong opposition from the traditional taxi industry.

According to the TV2 report, there is broad political support for the proposal from both sides of the Danish political spectrum.

A report by Nordea found that nine percent of all Danes took part in some form of shared economy in 2015, writes Jyllands-Posten.

Currents rules state that it is the responsibility of individuals to report any earnings gained from subletting property while they are away from home.

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