What's Going On With Airbnb Stock Wednesday?

Airbnb Inc ABNB shares are trading higher. The stock appears to be reacting favorably to the company's settlement with the Italian Revenue Agency.

What Happened: In early November, Airbnb said Italian police presented the company with a court order to seize a 779 million euro ($840.21 million) assessment from Airbnb Ireland. 

Italy passed a law in 2017 requiring short-term rental platforms that process payments to withhold host income tax and collect and remit tourist tax. Airbnb challenged this law before Italian courts, but it was ultimately determined that Airbnb's subsidiaries are subject to tax audits in Italy. 

On Wednesday, Airbnb announced it signed a settlement agreement with the Italian Revenue Agency for an aggregate payment of 576 million euros. The agreement settles the withholding on host income tax obligations of Airbnb Ireland for the audited periods.

The company noted that it doesn't intend to recover any tax withholdings from the impacted hosts, but it does intend to obtain information regarding hosts’ taxes already paid for 2022 and 2023.

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ABNB Price Action: Airbnb shares were up 1.39% at $142.51 at the time of publication, according to Benzinga Pro.

Photo: techieguy from Pixabay.