Income tax on rent, worked example, in Gambia
October 03, 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|
|Less Expenses (25%)3||4,500||18,000||36,000|
|= Taxable Income||13,500||54,000||108,000|
|Annual Income Tax Due||1,080||4,320||8,640|
|Tax Due as % of Gross Income||6.00%||6.00%||6.00%|
1 The property is jointly owned by husband and wife.
2 Exchange rate used: 1.00 US$ = 40.00 GMD
3 Estimated values. Income-generating expenses are deductible when calculating taxable income.
4 Rental income earnedfrom leasing residential properties by nonresident individuals is taxed at a flat rate of 8%.