Tax Example: Rent
August 09, 2016
|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 Expenses (25%)3||4,500||18,000||36,000|
|= Taxable Income||15,300||61,200||122,400|
|Income Tax Rates4|
|Annual Income Tax Due||$2,700||$10,800||$21,600|
|Tax Due as % of Gross Income||15%||15%||15%|
1 The property is jointly owned by husband and wife.
2 Exchange rate used: 1.00 US$ = 2,115.00 TZS
3 Estimated values. Income-generating expenses are deductible when calculating taxable income.
4 Rental income earned by nonresident individuals is taxed at a flat rate of 20%.