Airbnb Joins Fight Against Tax Cheats, Shares Kenyan Transactions with KRA
The Kenya Revenue Authority has initiated a request for data about Airbnb transactions within the nation.
The taxman requested information regarding transactions that took place on the short-term rental platforms from January 1, 2021, to December 31, 2022, according to a statement.
Airbnb stated that the requested information would reveal the Kenyans who rented the residences through the platform, as well as the revenue generated as a result.
Regarding the matter, the Irish company stated that it had previously received an official request from its authorities.
“KRA has issued an exchange of information request to the Irish Tax Authority (Irish Revenue) seeking certain information on Kenya hosts, and Irish Revenue has formally requested Airbnb to share this information, which we are legally obliged to do.
As a result, those users whose information would be compromised were notified to expect a notification once their information had been compromised.
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“Irish Revenue will now be communicating to each Kenyan user, whose data is being shared, that their data is being sent to KRA under an exchange of information request,” read the statement in part.
“Your earnings on Airbnb are subject to Kenyan tax regulations. If you need to file a tax return, remember that you have a legal obligation to accurately report your earnings on Airbnb to the Kenya Revenue Authority (KRA).
Whether the taxman will pursue individuals who neglected to remit their taxes during that specific period remains uncertain.
Airbnb operates as a lucrative enterprise in Kenya, where hosts earn tens of thousands of shillings during travel periods of high demand, such as celebrations.
The typical nightly rate charged by residents ranges from Ksh2,500 to Ksh5,000.
For specific residences, however, the price can reach Ksh40,000.
Airbnb Joins Fight Against Tax Cheats, Shares Kenyan Transactions with KRA