Income tax on rent, worked example, in Argentina

November 07, 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 Expenses3 7,200 28,800 57,600
= Taxable Income 10,800 43,200 86,400
Income Tax4
Flat rate 24.50% 2,646 10,584 21,168
Annual Income Tax Due 2,646 10,584 21,168
Tax Due as % of Gross Income 14.70% 14.70% 14.70%

Notes


1 The property is jointly owned by husband and wife.

2 Exchange rate used: 1.00 US$ = 15.00 ARS

3 The 40% standard deduction accounts for income-generating expenses

4 Nonresidents are taxed at a flat rate of 24.50% on 60% of gross income [(60% of gross income)*24.50%]; an effective rate of 21% on gross income (21% * gross income). This income tax is withheld by the tenant.

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