The unit generates substantially all of its revenues from facilitating guest stays at accommodations offered by hosts on Airbnb’s online marketplace for users outside of the United States.

The accounts for Airbnb Ireland UC show operating profits increased after revenues surged by $909m, from $4.199bn to $5.1bn last year.

The $5.1bn revenues generated by the Dublin-based unit represent 51% of the firm’s global revenues of $9.9bn in 2023.

The Irish unit owns Airbnb's Italian subsidiary and last December, Airbnb Ireland UC made a $621m (€576m) tax settlement concerning a 2017-2021 audit by the Italian tax authorities over the firm’s obligations to withhold and remit host income tax, including tax, interest and penalties.

A note attached to the accounts states the 2022 and 2023 tax audit periods by the Italian Revenue Agency remain open and the company commenced settlement discussions with the agency in the second quarter of this year. 

The accounts show the Irish unit made a $1bn withholding tax provision last year and after the December $621m settlement, there remained $380.85m in place at year-end to deal with the Italian tax liability from 2023 and 2022, and other liabilities that may arise.

The directors say in 2023, revenue grew by 22% and “the growth in revenues demonstrated the continued strong travel demand”.

Pre-tax profits fell by 24%, from $98.44m to $75.05m, and this was due to the company recording a $50.44m expense arising from a $48m foreign exchange loss and other unspecified expenses of $2.4m.

The company recorded a post-tax loss of $18.68m, and this followed the company incurring a corporation tax charge of $93.68m, which was a multiple of the $15.6m corporation tax charge for 2022.

The 2023 corporation tax charge was made up of an Irish corporation tax charge of $46.09m and a foreign corporation tax charge of $47.4m.

The bulk of the Irish corporation tax charge related to expenses not deductible for tax purposes of $36.36m.

The Irish-based firm’s cost of sales declined by 10 from $3.26bn to $2.9bn, as administration expenses more than doubled from $843.7m to $2bn.

Airbnb set up its European headquarters in Dublin in 2013 and the number employed by the Irish-based firm increased from 380 to 391, as staff costs rose from $56.48m to $59.89m.

The wage and salary bill of $41.3m and shared-based payments of $12.92m add to a combined $54.22m, and the average pay for the 391 workers works out at $138,693.

Pay to directors last year increased from $1.44m to $1.67m, largely made up of $667,000 in emoluments and $985,000 in benefits under long-term incentives scheme.

In March 2023, the company sublet a portion of its Dublin office space and this followed the firm reviewing its real estate lease arrangements.

The review came after the company adopted a Live and Work Anywhere policy in 2022, which permits the majority of employees to work remotely.

The profit last year takes account of non-cash depreciation costs of $2.14m.

At the end of December last, AirBnb Ireland UC had shareholder funds of $51.27m. The company’s cash funds fell sharply, from $251.39m to $42.03m.

Airbnb was established in 2007 when two ‘hosts' welcomed three guests to their San Francisco home, and has since grown to more than five million hosts who have welcomed more than two billion guest arrivals in almost every country across the globe.