Tax Example: Rent

Taxation Researcher | July 10, 2018

Non-resident couple´s rental income1
Monthly Rental Income2 1,500 6,000 12,000
Annual Rental Income 18,000 72,000 144,000
= Taxable Income 18,000 72,000 144,000
Income Tax4
flat rate 20% 3,600 14,400 28,800
Annual Income Tax Due 3,600 14,400 28,800
Tax due as % of Gross Income 20.00% 20.00% 20.00%
Source:
Global Property Guide research

Notes


1 The property is jointly owned by husband and wife.

2 Exchange rate used: 1.00 USD = 104.00 CVE

3 Estimated values. Income-generating expenses are deductible when calculating taxable income.

4 Rental income earned by nonresident individuals is taxed at a flat rate of 20%.

  

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