We are reaching out with an update about withholding Host income taxes in Italy.

[John6049]

Received an email today about Airbnbs agreement with the Italian tax authority, basically taxes will be withheld on host fees and payed out at some point in the future. I don't have a problem in principle, I pay tax already but it does raise some questions.

1- I have already paid my tax on account for 2024, so this looks like I am going to be paying twice or do I get a refund on my advance payment if you are going to deduct at source?

2- Any deductions that Airbnb make for 2024 will probably not be available to set against tax until 2025 by which point I may already have a tax calculation with a demand for tax on account for 2026. How is this going to work, I can see this has come about because The Italian tax authority wants to prevent non payment of tax but has Airbnb included in their discussions how this affects legal tax paying airbnb hosts?

3- The Italian tax system tends towards tax payed on account with tax reconciled the following year. But this is a deduction at source so I can see a situation where I may have to pay tax on account on money that I will never actually receive? or has something been put into place whereby I no longer need to pay on account?

Any thoughts welcome.

Cheers

[Helen3]

Hi @John6049  I'm afraid you are going to ask Airbnb or the Italian tax office. 

We are a community of English speaking hosts and guests so you are unlikely to find someone here who is familiar with the Italian tax system.

Alternatively speak to your accountant who helps you file taxes in the UK/Italy and/or join the Italian host group for your location and ask there.

Lovely place by the way 🙂

[Bhumika]

Hi @John6049 ! Welcome to the Community Center🌻 and thank you for sharing your post and details with us.

As Helen suggested, it would be a great idea to share these concerns with affected Hosts, who are familiar with the Italian tax system. We do have an Italian Community where the Hosts might be able to help with relevant advise and have been actively discussing about it . Sharing the link here : https://community.withairbnb.com/t5/Community-Center-IT/ct-p/community-center-it 

I am also tagging my lovely colleague from the Italian Community Center @Walter in case you would like any help to navigate through the amazing Community!

Hope it helps!