IRD making Tax easier for Airbnb hosts
It is estimated that a large percentage of Airbnb hosts are not filing tax returns and hence not paying tax on income generated from short term rentals on Airbnb and similar websites.
The IRD is trying to make it simple for these hosts to claim deductions and encourage compliance.
As per public consultation PUB00303/a to PUB00303/g proposal shows deductions of $50 a night if the host is the home owner and $45 a night if the host rents the property, regardless of the actual costs. The hosts still have the option of calculating and claiming their actual costs if they preferred.
The changes are aimed to simplify tax obligations for people who occasionally host short-stay accommodation guests in their home, using websites such as Airbnb or Bookabach. Inland Revenue is hoping that the change would reduce tax evasion and so result in more tax being paid overall.
Having income from short-term accommodation, contact us for advice on your tax obligations. Don’t get caught out by IRD’s tax evasion penalties.
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