Airbnb has issued a statement to say it follows the rules and pays all taxes it owes amid criticism it has not paid enough corporation tax.
The accommodation site reportedly paid less than £200,000 in UK corporation tax last year, despite collecting £657 million in rental payments.
The commissions the company earns in the UK are booked by its Irish subsidiary, but it also has two UK subsidiaries.
One made a pre-tax profit, but the other resulted in a loss, according to the Sunday Times.
Airbnb Payments UK made a pre-tax profit of £960,000 and paid £188,000 in UK corporation tax, while Airbnb UK reported a £463,000 pre-tax profit last year but because it gave shares to staff, which are tax-deductable, there was no corporation tax bill.
Airbnb said: "We follow the rules and pay all the tax we owe.
"The overwhelming amount of money generated by the Airbnb platform stays with local hosts and their communities, and is subject to local tax."
