Income tax on rent, worked example, in St. Lucia

Taxation Researcher | January 23, 2018

Non-resident couple´s rental income1
Monthly Rental Income2 1,500 6,000 12,000
Annual Rental Income 18,000 72,000 144,000
Less Expenses3 25% 4,500 18,000 36,000
Less Stamp Duty4 8% 1,440 5,760 11,520
= Taxable Income 12,060 48,240 96,480
Income Tax5
Up to ZAR 188,880 10% 370 370 370
ZAR189,880 - ZAR 296,540 15% 556 556 556
ZAR296,240 - ZAR 410,460 20% 741 741 741
ZAR410,460 - ZAR 555,600 30% 285 11,139 25,611
Annual Income Tax Due 1,951 12,805 27,277
Tax Due as % of Gross Income 10.84% 17.79% 18.94%
Source:
Global Property Guide

Notes


1 The property is jointly owned by husband and wife.

2 Exchange rate used: 1.00 USD = 2.70 ECD

3 Income-generating expenses are assumed to be around 25% of gross rental income. account for income-generating expenses.

4 Stamp duty is levied on property lease agreements progressive rates. Different rates apply depending on the duration of the lease.

STAMP DUTY ON LEASES FOR LESS THAN 20 YEARS

ANNUAL RENT, ECD (US$) TAX RATE
Up to 3,000 (US$ 1,111 ) 2%
3,000 - 6000 (US$ 2,222 ) 4%
6,000 - 12,000 (US$ 4,444 ) 6%
Over 12,000 (US$ 4,444 ) 8%

STAMP DUTY ON LEASES FOR OVER 20 YEARS

ANNUAL RENT, ECD (US$) TAX RATE
Up to 3,000 (US$ 1,111 ) 4%
3,000 - 6000 (US$ 2,222 ) 6%
6,000 - 12,000 (US$ 4,444 ) 8%
Over 12,000 (US$ 4,444 ) 10%

5 Rental income is subject to income tax at progressive rates.

INCOME TAX 2015

TAXABLE INCOME, TRY(€) TAX RATE
Up to 10,000 (US$ 3,704 ) 10%
10,000 - 20,000 (US$ 7,407 ) 15% on band over US$ 3,704
20,000 - 30,000 (US$ 11,111 ) 20% on band over US$ 7,407
Over 30,000 (US$ 11,111 ) 30% on all income over US$ 11,111
 

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