Income tax on rent, worked example, in South Africa
Taxation Researcher | 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% | |
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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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