Income tax on rent, worked example, in Venezuela
| 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 |
| Less Cost2 | |||
| Administrative Expenses | (1,800) | (7,200) | (14,400) |
| Repairs and Maintenance | (3,000) | (15,000) | (20,000) |
| Real Estate Tax | (1,200) | (4,608) | (9,071) |
| Municipal Tax | (45) | (173) | (340) |
| Less Depreciation3 | (225) | (900) | (1,800) |
| = Taxable Income | 11,730 | 44,119 | 98,389 |
| Income Tax Rates4 | |||
| Flat Rate 34% | 3,988 | 15,001 | 33,452 |
| Annual Income Tax Due | US$3,988 | US$15,001 | US$33,452 |
| Tax Due as % of Gross Income | 22.16% | 20.83% | 23.23% |
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 August 11, 2010.
Notes
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1 The property is jointly owned by husband and wife.
2 Estimated values. Only actually incurred expenses are deductible such as administrative expenses (maximum of 10%), repairs and maintenance, insurance, real estate tax, and municipal tax.
3 Cost-of-purchase depreciation (capital allowance) is not deductible.
4 Payments could be subject to withholding (34%).
Non-Resident Couple (Ownership Through a Local Company):
| 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 |
| Less Cost2 | |||
| Administrative Expenses | (1,800) | (7,200) | (14,400) |
| Repairs and Maintenance | (3,000) | (15,000) | (20,000) |
| Real Estate Tax | (1,200) | (4,608) | (9,071) |
| Municipal Tax | (45) | (173) | (340) |
| Less Depreciation3 | (225) | (900) | (1,800) |
| = Taxable Income | 11,730 | 44,119 | 98,389 |
| Income Tax Rates4 | |||
| Flat Rate 34% | 1,733 | 7,432 | 25,405 |
| Annual Income Tax Due | US$1,733 | US$7,432 | US$25,405 |
| Tax Due as % of Gross Income | 9.63% | 10.32% | 17.64% |
| Thanks to: |
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Notes
1 The property is jointly owned by husband and wife through a local company.
2 Estimated values. Only actually incurred expenses are deductible such as administrative expenses (maximum of 10%), repairs and maintenance, insurance, real estate tax, municipal tax, and LOCTI.
3 Cost-of-purchase depreciation (capital allowance) is not deductible.
4 Taxable income is subject to corporate tax at progressive rates.