Income tax on rent, worked example, in Argentina
July 21, 2021
| 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 | 7,200 | 28,800 | 57,600 | |
| = Taxable Income | 10,800 | 43,200 | 86,400 | |
| Income Tax4 | ||||
| Flat rate | 35.00% | 3,780 | 15,120 | 30,240 |
| Annual Income Tax Due | 3,780 | 15,120 | 30,240 | |
| Tax Due as % of Gross Income | 21.00% | 21.00% | 21.00% | |
Notes
1 The property is jointly owned by husband and wife.
2 Exchange rate used: 1.00 US$ = 29.00 ARS
3 The 40% standard deduction accounts for income-generating expenses
4 Nonresidents are taxed at a flat rate of 35% on 60% of gross income [(60% of gross income)*35%]; an effective rate of 21% on gross income (21% * gross income). This income tax is withheld by the tenant.