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Mar 20, 2007

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
Less Cost2 (1,500) (6,000) (12,000)
Less Depreciation3 (12,000) (48,000) (96,000)
= Taxable Income 4,500 18,000 36,000
Income Tax Rates5
Up to US$31,200 30% 1,350 5,400 9,360
US$31,200 – US$56,000 36% - - 1,728
US$56,000 – US$96,500 25% - - -
Over US$96,500 25% - - -
Annual Income Tax Due US$1,350 US$5,400 US$11,088
Tax Due as % of Gross Income 7.50% 7.50% 7.70%
Thanks to:
Fahn Kanne & Co Grant Thornton

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 March 20, 2007.

Notes


Fahn Kanne & Co Grant Thornton is a member firm of Grant Thornton International. Grant Thornton International is not a worldwide partnership. Member firms of the international organization are independently owned and operated.

1 The property is jointly owned by husband and wife.

2 Estimated values. Income-generating expenses are all deductible.

3 Estimated values. The depreciation rate is 2% per annum.

4 These tax bands and tax rates are only applicable for the year 2006. Changes in the income tax bands and rates are expected in the next few years.




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
Flat Rate 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:
Fahn Kanne & Co Grant Thornton

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 March 20, 2007.

Notes


Fahn Kanne & Co Grant Thornton is a member firm of Grant Thornton International. Grant Thornton International is not a worldwide partnership. Member firms of the international organization are independently owned and operated.

1 The property is jointly owned by husband and wife.

2 The 10% tax is imposed on the gross rental income.

     





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