Airbnb Ireland reaches $620.56 million agreement with Italian tax authorities over owed tax

Airbnb Inc. (ABNB) said Wednesday that Airbnb Ireland, its European headquarters, has signed an agreement with the Italian tax authorities to settle a tax assessment of 576 million euros ($620.56 million) relating to the 2017 to 2021 tax years. The company said it signed the deal without admitting any liability. The move comes after an Italian judge ordered the seizure of EUR779.5 million from Airbnb Ireland in November for alleged tax evasion, as Reuters reported at the time. The company is required to withhold 21% of landlords' rental income for the Italian tax authorities under a 2017 law. Today's agreement "settles the withholding on Host income tax obligations of Airbnb Ireland, including taxes, interest and penalties, for the audited periods," the company said in a regulatory filing. "The settlement does not include any tax withholding assessments for 2022 and 2023, which amounts could be material," it added. The stock rose 1.3% premarket and has gained 64% in the year to date, while the S&P 500 has gained 21%.

-Ciara Linnane

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12-13-23 0636ET

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