Income tax on rent, worked example, in Zimbabwe
October 21, 2016
| Non-resident couple's rental income1 | US$1,500 | US$6,000 | US$12,000 | |
| Monthly Rental Income2 | 1,500 | 6,000 | 12,000 | |
| Annual Rental Income | 18,000 | 72,000 | 144,000 | |
| Less Expenses 3 | 25% | 4,500 | 18,000 | 36,000 |
| = Taxable Income | 13,500 | 54,000 | 108,000 | |
| Income Tax4 | ||||
| Up to US$3,600 | 0% | - | - | - |
| US$3,600 - US$18,000 | 20% | 1,980 | 2,880 | 2,880 |
| US$18,000 - US$36,000 | 25% | 4,500 | 4,500 | |
| US$36,000 - US$60,000 | 30% | 5,400 | 7,200 | |
| US$60,000 - US$120,000 | 35% | 16,800 | ||
| US$120,000 - US$180,000 | 40% | |||
| US$180,000 - US$240,000 | 45% | |||
| Over US$240,000 | 50% | |||
| Annual Income Tax Due | 1,980 | 12,780 | 31,380 | |
| Tax Due as % of Gross Income | 11.00% | 17.75% | 21.79% | |
Notes
1 The property is jointly owned by husband and wife.
2 Exchange rate used: 1.00 US$ = 361.90 ZWD
3 Estimated values. Income-generating expenses are deductible when calculating taxable income.
4 Rental income earned by nonresident individuals is taxed at progressive rates.
INCOME TAX |
|
| TAXABLE INCOME, US$ | RATE |
| Up to US$ 3,600 | 0% |
| US$3,600 - US$ 18,000 | 20% |
| US$18,000 - US$ 36,000 | 25% |
| US$36,000 - US$ 60,000 | 30% |
| US$60,000 - US$ 120,000 | 35% |
| US$120,000 - US$ 180,000 | 40% |
| US$180,000 - US$ 240,000 | 45% |
| Over US$ 240,000 | 50% |
| Source: Global Property Guide | |