Tax Example: Rent

June 15, 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
Less Expenses 3 25% 4,500 18,000 36,000
= Taxable Income 13,500 54,000 108,000
Income Tax4
Flat Rate 20% 2,700 10,800 21,600
Annual Income Tax Due 2,700 10,800 21,600
Tax Due as % of Gross Income 15.00% 15.00% 15.00%
Thanks to:

DISCLAIMER: The information contained above is marketing material only and is not written tax advice directed at the particular facts and circumstances of any person and should not be relied upon. We encourage you to discuss your particular situation with us or an independent tax advisor. This information was last updated on June 15, 2016.


Notes


1 The property is jointly owned by husband and wife.

2 Exchange rate used: 1.00 EUR = 125.00 RSD

3 A standard deduction of 25% from the gross income is given to cover income- generating expenses. However, a taxpayer can opt to deduct actually incurred expenses instead of availing the standard deduction,

4 Rental income of nonresident foreigners is taxed at a flat rate of 20%.

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