Tax example: Rent

April 24, 2012

Non-resident couple's joint monthly rental income1 US$2,500 US$6,000 US$12,000
Annual Rental Income 18,000 72,000 144,000
Less: Tax-Category Deductions2 11,377.53 11,377.53 11,337.53
Less Depreciation3
= Taxable Income 6,642.47 60,622.47 132,622.47
Income Tax Rates
Progressive tax rates4 559 14,815.98 52,302.77
Annual Income Tax Due US$559 US$14,815.98 US$52,302.77
Tax Due as % of Gross Income 3.11% 14.70% 14.70%
Thanks to:
Ernst & Young

Notes


1 The property is jointly owned by husband and wife. Exchange rate used: US$1 = AWG1.7900.

2 A standard deduction of US$11,378 is applicable on all taxable income for income tax purposes.

3 Individuals owning real property cannot deduct depreciation expense or capital allowance.

4 Income tax is levied at progressive rates in Aruba. Married couples filing jointly are taxed under the Schedule II income tax rates.


Income Tax

TAXABLE INCOME, AWG (US$)
TAX RATES
Schedule I Schedule II
Up to 7,118 (US$3,977) 7.00% 7.40%
7,119 - 16,759 (US$9,363) 9.55% 10.05%
16,759 - 27,555 (US$15,394) 13.70% 14.45%
27,555 - 39,888 (US$22,284) 18.00% 19.00%
39,888 - 53,593 (US$29.940) 23.50% 24.80%
53,593 - 68,994 (US$38,544) 29.00% 30.60%
68,944 - 83,020 (US$46,380) 34.10% 35.95%
83,020 - 98,189 (US$54,854) 38.00% 40.10%
98,189 - 117,528 (US$65,658) 41.75% 44.05%
117,528 - 145,448 (US$81,256) 43.20% 45.60%
145,448 - 186,683 (US$104,292) 46.25% 48.80%
186,683 - 250,446 (US$139,914) 52.00% 54.85%
250,446 - 296,956 (US$165,897) 54.20% 57.20%
Over 296,956 (US$165,897) 55.85% 58.95%
Source: Global Property Guide

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