Income tax on rent, worked example, in Macedonia
Taxation Researcher | August 01, 2017
| 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) |
| = Taxable Income | 13,500 | 54,000 | 108,000 | |
| Income Tax Rates4 | ||||
| Flat rate | 10% | 1,350 | 5,400 | 10,800 |
| Annual Income Tax Due | 1,350 | 5,400 | 10,800 | |
| Tax Due as % of Gross Income | 7.50% | 7.50% | 7.50% | |
Thanks to:  |
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Notes
1 The property is jointly owned by husband and wife.
2 Exchange rate used: 1.00 EUR = 62.00 MKD
3 Income-generating expenses are deductible when calculating taxable income. A statutory deduction of gross rent is given to account for income- generating expenses. Alternatively, taxpayers can opt for itemized deduction instead of availing the standard deduction.
4 Rental income is taxed at a flat rate of 10%.
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