‘AirBnB’ has very fast become a household name. Many people both abroad and in South Africa are making extra income via this and other online platforms which enable them to list rooms, apartments and houses for rental.
It is, however, important to remember that:
- SARS regards income earned in this way as taxable income, which must therefore be included as trading income, after making provision for allowable deductions, in the host’s annual tax return.
- The AirBnb umbrella organisation is also legally obliged to provide details to local tax authorities of the earnings of all AirBnb hosts. So if you are an AirBnB host, ensure that you keep sufficient records to prove that you have declared all income received, and to substantiate all claims in respect of expenditure.
For assistance with your tax affairs, contact us on STBB.