Airbnb, the accommodation website, paid less than £200,000 in UK corporation tax last year despite collecting £657m of rental payments for property owners.
The commissions the company earns in the UK are booked by its Irish subsidiary, but it also has two UK subsidiaries.
One unit made a pre-tax profit, but the other did not incur UK corporation tax because deductions resulted in a loss.
Airbnb said in a statement: “We follow the rules and pay all the tax we owe.”
One of the British subsidiaries, Airbnb Payments UK, handles payments between landlords and travellers for countries other than the United States, China and India.
That unit made a pre-tax profit of £960,000 and paid £188,000 in UK corporation tax – £8,000 less than in 2015.
The other British subsidiary, Airbnb UK, markets the website and app to British consumers. It reported a £463,000 pre-tax profit last year but because it gave shares to staff, …
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