Tax Example: Rent

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

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