Israel: Worked Example of Tax on Rent
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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: |
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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 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: |
||||
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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