Income tax on rent, worked example, in Macau

March 28, 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 3 10% 1,800 7,200 14,400
Less: Standard Deduction4 438 438 438
= Taxable Income 15,763 64,363 129,163
Income Tax5
Flat rate 10% 1,576 6,436 12,916
Annual Income Tax Due 1,576 6,436 12,916
Tax Due as % of Gross Income 8.76% 8.94% 8.97%
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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 28 March 2016.


Notes


1 The property is jointly owned by husband and wife.

2 Exchange rate used: 1.00 US$ = 8.00 MOP

3 A standard deduction of 10% of the gross income is allowed to cover income-generating expenses.

4 A standard annual deduction of MOP3,500 (US$438) is allowed for all properties.

5 Rental income is taxed at a flat rate of 10%.

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