Tax Administration will have a clear tax limit for the sharing economy
The Tax Administration is proposing several measures to improve and simplify the taxation of the so-called sharing economy with global companies like Uber and Airbnb spearheaded.
The proposals in a recent report includes establishment of clearer boundaries between what is tax free and what is business.
Moreover the tax authorities are recommending that companies that provide accommodation and assignment services, are required to report income information directly to the tax authorities.
– Our experience is that it is more correct tax when the information comes directly from the source, such as banking information from the bank and information about income from the employer. We believe direct reporting is the future of the sharing economy companies, says tax director Hans Christian Holte.
According to the tax administration, cases must be considered individually about people taking many commissions through the sharing economy, engaged in business.
– Judgments can be unpredictable for the taxpayer. The Tax Administration therefore wants to simplify the regulatory framework by creating a recipe for what is considered business, says Holte.
The concept of the sharing economy involves the supply of various services – such as rental homes and taxi driving your own car. Airbnb and Uber are two of the largest global players.
Source: NTB scanpix / Norway Today
