Income tax on rent, worked example, in Trinidad and Tobago
Taxation Researcher | August 16, 2016
|Non-resident couple´s joint monthly rental income1||US$1,500||US$6,000||US$12,000|
|Monthly Rental Income (2)||1,500||6,000||12,000|
|Annual Rental Income||18,000||72,000||144,000|
|Less Expenses (3)||25%||4,500||18,000||36,000|
|= Taxable Income||13,500||54,000||108,000|
|Income Tax 4|
|Up to TND1,500||25%||3,375||13,500||27,000|
|Annual Income Tax Due||US$2,085||US$12,713||US$29,797|
|Tax Due as % of Gross Income||18.75%||18.75%||18.75%|
Global Property Guide
1 The property is jointly owned by husband and wife.
2 Exchange rate used: 1.00 US$ = 6.33 TTD
3 Estimated values. Income-generating expenses are deductible when calculating taxable income. Allowable deductions include maintenance and repair costs, insurance, rates and taxes, gas, electricity, telephone, security, pest control, wear and tear(depreciation) on furniture, and interest expense.
4 Rental income earned by nonresident individuals is taxed at a flat rate of 25%.