Income tax on rent, worked example, in Nigeria

October 24, 2017

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
Withholding Tax 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:


Notes


1 The residential property is jointly owned by husband and wife.

2 Non-residents' gross rental income is subject to a withholding at a rate of 10%. The tenant deducts the amount and remits it to the tax authorities.

3 Non-residents' gross rental income is subject to a withholding tax at a rate of 10%. The tenan deducts the amount and remits it to the tax authorities.

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