Airbnb France paid just over 200,000 euros in income tax in 2020

BFM COMPANY INFO. The seasonal rental platform still pays very little corporation tax in France. This will not fail to fuel the debates over the GAFA tax implemented in France and the reform of the taxation of digital giants within the OECD.

The years go by and the corporation taxes that the digital giants pay remain as hungry as ever. Airbnb France thus published its accounts for 2020 on Tuesday, an account that BFM Business could consult. And the French subsidiary of the digital giant shows only 204,662 euros paid last year for income tax, an increase of 6% compared to 2019, when this amount was 193,398 euros.

At the same time, the group’s French subsidiary had a turnover of only 16.02 million euros in 2020, ie +26% compared to 2019 (12.75 million euros). The net result for its part is 546,791 euros against 457,765 euros the year before (ie +19% over a year).

A simple service provider

It must be said that Airbnb France acts as a simple service provider for the European parent company, which is based in Ireland. Specifically, Airbnb France provides “promotion and marketing services to promote the Airbnb platform in France”, state accounts. Airbnb Ireland collects all commissions on rent and services paid in France. And he pays a simple marketing service to Airbnb France. It should be noted that this editing is perfectly legal, though it may seem shocking.

Because there is a very clear correlation between the revenue reported in France and the actual revenue generated by the platform. In the same year 2020, for example, Airbnb submitted $ 3.6 billion in worldwide revenue, according to its most recent annual results. It should be noted that due to the losses associated with the corona crisis, the group had not paid any tax globally by 2020. But the year before, in 2019, the group had paid a total of more than $ 260 million in taxes and duties. That year, taxes on profits paid by Airbnb France therefore weighed approximately less than 0.1% of all taxes and duties paid by Airbnb worldwide.

Paris in the top 10 cities for Airbnb

Airbnb does not disclose exact details about the weight of its actual activity in France. But we know that the Europe, Africa and the Middle East (EMEA) zone weighed 30% of its revenue in 2020, according to the group’s financial documents, which have been listed on the stock market since December last year. And we know that out of this amount, the income generated in Paris and in the rest of France is significant. The French capital is also part of the top 10 cities in the world for Airbnb, as explained in the document sent to the US stock exchange policeman, SEC, when he arrived on Wall Street.

“We comply with tax rules and pay all taxes due in the countries in which we operate. Airbnb’s French office provides marketing services and pays all applicable taxes, including VAT. Airbnb also pays from the French tax on digital services,” Airbnb explains to BFM Business.

The seasonal rental platform also insists on the implementation of the automatic collection of the tourist tax and its transfer to the cities. “For the year 2019 alone, we have thus collected and transferred to French municipalities more than 72 million euros in tourist tax,” Airbnb insists. In addition, since 2020, the group has automatically transferred user income to the French tax authorities.

Ongoing negotiations on a GAFA tax in the OECD

To compensate for tax schemes like the one introduced by Airbnb, the French government has actually implemented a tax on digital services. Airbnb does not currently communicate the size of the GAFA tax paid to the tax authorities, but confirms to BFM Business that it has paid it in 2019 and 2020.

About twenty companies contribute to this GAFA tax, and it brought in the state 375 million euros last year, according to the latest activity report from DGFip. It is not without bothering the US government in Washington, while negotiations are still underway on a global reform of the taxation of digital companies in OECD countries. The agreement is expected to be concluded in October.

Leave a Comment