|Non-resident couple´s joint monthly rental income1||US$1,500||US$6,000||US$12,000|
|Annual Rental Income||18,000||72,000||144,000|
|= Taxable Income||1,605||31,285||53,359|
|Income Tax Rates|
|Up to NZD 14,000||10.50%||169||980||980|
|NZD14,000 - NZD 48,000||17.50%||-||6,586||3,967|
|NZD48,000 - NZD 70,000||30%||-||-||6,408|
|Over NZD 70,000||33%||-||-||-|
|Annual Income Tax Due||169||7,566||11,354|
|Tax Due as % of Gross Income||0.94%||10.51%||7.88%|
Global Property Guide research
1 The property is jointly owned by husband and wife.
2 Exchange rate used: 1.00 US$ = 1.50 NZD
3 Estimated values.Only expenses actualy incurred may be deducted such as insurance, property agent fees (approximately 8% of the rent), land rates, repairs and maintenance.
4 Typical depreciation rates for buildings are 3% on a diminishing value basis or 2% of the cost. Accordingly, the depreciation deduction available will depend on the amount of land attached to the property. In these cases, the property is assumed to be a semi-detached home and has allocated 50% of the cost price for depreciation.
4-1 Property cost is US$1,200,000; depreciation = [2% * US$600,000].
4-2 Property cost is US$2,500,000; depreciation = [2% * US$1,250,000].
4-3 Property cost is US$5,760,000; depreciation = [2% * US$2,880,000].
5 Rental income earned by nonresident individuals is taxed at progressive rates.
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