Income tax on rent, worked example, in Dominica

July 23, 2018

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 25,000 0% - - -
ECD20,000 - ECD 45,000 15% - 2,222 2,222
ECD20,000 - ECD 75,000 25% - 3,341 9,259
Over ECD 75,000 35% - - 14,539
Annual Income Tax Due - 5,563 26,021
Tax Due as % of Gross Income 0.00% 7.73% 18.07%

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 2017

TAXABLE INCOME, ECD (US$) TAX RATE
Up to 30,000 (US$ 11,111 ) 0%
30,000 - 50,000 (US$ 18,519 ) 15%
50,000 - 80,000 (US$ 29,630 ) 25%
Over 80,000 (US$ 29,360 ) 35%

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