Aruba: Worked Example of Tax on Rent

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Tax example: Rent

Non-resident couple's joint monthly rental income1		US$2,500
Annual Rental Income		30,000
Less Cost2		5,587
Less Depreciation3		6,7504
= Taxable Income		17,663
Income Tax Rates
		1,315
Annual Income Tax Due		US$1,315
Tax Due as % of Gross Income		4.4%
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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 property is jointly owned by husband and wife.

² Estimated costs; includes maintenance and repairs, insurance, ground rent/ tax, legal and professional fees for filing tax returns.

³ Depreciation expense or capital allowance = [2.5% * (Purchase value – 10% fiscal residual value)].

⁴ In this case, the property is valued at US$300,000. [2.5% * (US$300,000 – US$30,000)] = US$6,750.

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