Income tax on rent, worked example, in Antigua and Barbuda
Taxation Researcher | November 03, 2016
|Non-resident couple´s rental income1||US$1,500||US$6,000||US$12,000|
|Monthly Rental Income2||1,500||6,000||12,000|
|Annual Rental Income||18,000||72,000||144,000|
|= Taxable Income||13,500||54,000||108,000|
|Annual Income Tax Due||2,700||10,800||21,600|
|Tax Due as % of Gross Income||15%||15%||15%|
1 The property is jointly owned by husband and wife.
2 Exchange rate used: 1.00 US$ = 2.70 ECD
3 Estimated values. Income-generating expenses are deductible when calculating taxable income. Allowable deductions include repairs, utiltiies, loan interest on the property, depreciation expenses, and other income- generating expenses.
4 Rental income earned by nonresident individuals is taxed at a flat rate of 20%.