Global Property Guide

Financial Information for the Residential Property Buyer


Tax Example: Rent

Last Updated: November 30, 2017

ELECTING TO TREAT RENTAL INCOME AS INCOME EFFECTIVELY CONNECTED WITH BUSINESS
Non-resident coupleĀ“s joint monthly rental income1 US$1,500 US$6,000 US$12,000
Annual Rental Income 18,000 72,000 144,000
Less Expenses3 25% 4,500 18,000 36,000
= Taxable Income 13,500 54,000 108,000
Income Tax Rates4
Up to US$ 9,000 0% - - -
US$9,000 - US$ 25,000 7% 315 1,120 1,120
US$25,000 - US$ 41,500 14% - 2,310 2,310
US$41,500 - US$ 61,500 25% - 3,125 5,000
Over US$ 61,500 33% - - 15,345
Annual Income Tax Due 315 6,555 23,775
Tax Due as % of Gross Income 1.75% 9.10% 16.51%
Source:
Global Property Guide research

Notes


1 The property is jointly owned by husband and wife.

2 Exchange rate used: 1.00 USD = 1.00 USD

3 Estimated values. Income-generating expenses are deductible when calculating taxable income.

4 Rental income earned by nonresident individuals is taxed at progressive rates.


NOT ELECTING TO TREAT RENTAL INCOME AS INCOME EFFECTIVELY CONNECTED WITH BUSINESS
Non-resident coupleĀ“s joint monthly rental income1 US$1,500 US$6,000 US$12,000
Annual Rental Income 18,000 72,000 144,000
= Taxable Income 18,000 72,000 144,000
Income Tax Rates2
Flat Rate 29% 5,220 20,880 41,760
Annual Income Tax Due US$5,220 US$20,880 US$41,760
Tax Due as % of Gross Income 29% 29% 29%
Thanks to:
Kevane Grant Thornton LLP

Notes


1 The property is jointly owned by husband and wife.

2 Exchange rate used: 1.00 USD = 1.00 USD

3 Estimated values. Income-generating expenses are deductible when calculating taxable income.

4 Rental income earned by nonresident individuals is taxed at a flat rate of 29%.

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