Income tax on rent, worked example, in Dominica

Taxation Researcher | September 30, 2021

Non-resident couple´s joint monthly rental income1 €1,500 €6,000 €12,000
Annual Rental Income2 18,000 72,000 144,000
Less Expenses (30%)3 5,400 21,600 43,200
= Taxable Income 12,600 50,400 100,800
Income Tax 4
Up to ECD 20,000 0% - - -
ECD20,000 - ECD 50,000 25% - 4,448 5,556
Over ECD 50,000 35% - - 11,159
Annual Income Tax Due - 4,448 16,714
Tax Due as % of Gross Income 0.00% 6.18% 11.61%

Notes


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.

4 Rental incoem earned by nonresident individuals are taxed at progressive rates.

INCOMTE TAX 2020

TAXABLE INCOME, ECD (US$) TAX RATE
Up to 20,000 (US$ 7,407 ) 15%
20,000 - 50,000 (US$ 18,519 ) 25%
Over 50,000 (US$ 18,519 ) 35%