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%
Source:
Global Property Guide

Notes


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%.

 

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