Income tax on rent, worked example, in St. Vincent & Grenadines
July 28, 2016
| Non-resident couple's rental income1 | ||||
| Monthly Rental Income2 | 1,500 | 6,000 | 12,000 | |
| Annual Rental Income | 18,000 | 72,000 | 144,000 | |
| = Taxable Income | 18,000 | 72,000 | 144,000 | |
| Income Tax3 | ||||
| Flat rate | 10% | 2,304 | 4,834 | 4,834 |
| Annual Income Tax Due | - | 3,771 | 3,771 | |
| Other Taxes4 | ||||
| Alien Land Holding Tax | ||||
| Up to ECD100,000 | ECD10,000 | 3,704 | 3,704 | 3,704 |
| ECD100,000 - ECD3,000,000 | 6% | - | 2,098 | 6,418 |
| Over ECD3,000,000 | 4% | - | - | - |
| Total Tax Due | 3,704 | 5,801 | 10,121 | |
| Annual Income Tax Due | 5,504 | 13,001 | 24,521 | |
| Tax Due as % of Gross Income | 30.58% | 18.06% | 17.03% | |
| Source: Global Property Guide | ||||
Notes
1 The property is jointly owned by husband and wife.
2 Exchange rate used: 1.00 US$ = 2.70 ECD
3 Gross rental income earned by nonresident individuals are taxed at a flat rate of 10%. No deductions are allowed.
4 Nonresident individuals renting out their property in the islands are subject to alien land holding tax. This tax is levied at progressive rates on the aggregate rent of the property for the whole duration of the lease.
ALIEN LAND HOLDING TAX |
|
| AGGREGATE RENT, ECD (US$) | |
| Up to 100,000 (US$ 37,037 ) | 10,000 (US$ 3703.703704) |
| 100,000 - 3,000,000 (US$ 1,111,111 ) | 6% on band over US$ 37,037 |
| Over 3,000,000 (US$ 1,111,111 ) | 4% on band over US$ 1,111,111 |
| Source: Global Property Guide | |