Nigeria: Worked Example of Tax on Rent
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Last Updated: Sep 03, 2006
Tax Example: Rent
| Non-resident couple's joint monthly rental income1 | US$1,500 | US$6,000 | US$12,000 | |
| Annual Rental Income | 18,000 | 72,000 | 144,000 | |
| = Taxable Income | 18,000 | 72,000 | 144,000 | |
| Income Tax Rates2 | ||||
| Withholding Tax | 10% | 1,800 | 7,200 | 14,400 |
| Annual Income Tax Due | US$1,800 | US$7,200 | US$14,400 | |
| Tax Due as % of Gross Income | 10% | 10% | 10% | |
Thanks to:
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DISCLAIMER: The information contained above is marketing material only and is not written tax advice directed at the particular facts and circumstances of any person and should not be relied upon. We encourage you to discuss your particular situation with us or an independent tax advisor. This information was last updated on October 3, 2006.
Notes
1 The residential property is jointly owned by husband and wife.
2 Non-residents’ gross rental income is subject to a withholding at a rate of 10%. The tenant deducts the amount and remits it to the tax authorities.
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Your Comments
posted by Olusegun Oriade | 2008-04-30
Real Estate Analyst, Lagos
Withholding Tax is not a rent tax it is a general income tax payment procedure to ensure all incomes are taxed. The idea is to ensure that income are taxed at source. sort helping your land lord to pay his/her income tax in advance. the tax recipt is then sent to him/her for filing at the appropriate time.