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: |
||||
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.