Global Property Guide

Financial Information for Residential Property Buyers


Tax Example: Rent

Last Updated: January 09, 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 Expenses3 (5,201) (27,184) (54,585)
= Taxable Income 12,799 44,816 89,415
Income Tax4
Up to ZAR 188,880 18% 2,304 4,883 4,883
ZAR189,880 - ZAR 296,540 25% - 3,809 3,809
ZAR296,240 - ZAR 410,460 30% - 736 4,882
ZAR410,460 - ZAR 555,600 35% - - 7,257
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 9,428 24,648
Tax Due as % of Gross Income 12.80% 13.09% 17.12%
Thanks to:
Nexia International

DISCLAIMER: The information contained above is marketing material only and is not written tax advice directed at the particular facts and circumstances of any person and should not be relied upon. We encourage you to discuss your particular situation with us or an independent tax advisor. This information was last updated on July 7, 2016.

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,

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