Income tax on rent, worked example, in South Africa

Taxation Researcher | October 22, 2019

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 Expenses3 (5,201) (27,184) (54,585)
= Taxable Income 12,799 44,816 89,415
Income Tax4
Up to ZAR 195,850 18% 2,304 5,036 5,036
ZAR195,850 - ZAR 305,850 25% - 3,929 3,929
ZAR305,850 - ZAR 423,300 30% - 337 5,034
ZAR423,300 - ZAR 555,600 35% - - 6,615
ZAR555,600 - ZAR 708,310 38% - - 3,817
ZAR708,310 - ZAR 1,500,000 41% - - -
Over ZAR 1,500,000 45% - - -
Annual Income Tax Due 2,304 9,302 24,430
Tax Due as % of Gross Income 12.80% 12.92% 16.97%
Thanks to:
Nexia International

Notes


1 The property is jointly owned by husband and wife, but then taxed separately (50% upon each partner).

2 Exchange rate used: 1.00 US$ = 14.00 ZAR

3 Estimated values only. Only expenses actually incurred may be deducted such as repairs and maintenance, insurance, collector┬┤s commission and bank charges.

4 Rental income earned by nonresident individuals is taxed at progressive rates.

Comments

thamendrie | June 15, 2010

please provided a detailed list of expenses that can be deduted from rental income before taxes,this is my main source of income,

Login or Register to submit a comment!
In order to promote open and spam-free conversations, Global Property Guide moderates commetns on all articles. You can expect that your comment will be published within 24 hours.