Income tax on rent, worked example, in Chile
Taxation Researcher | July 23, 2019
|Non-resident couple´s rental income1|
|Monthly Rental Income2||1,500||6,000||12,000|
|Annual Rental Income||18,000||72,000||144,000|
|= Taxable Income||18,00||72,000||144,000|
|Income Tax 4|
|Annual Income Tax Due||6,300||25,200||50,400|
|Tax Due as % of Gross Income||35.00%||35.00%||35.00%|
Global Property Guide
1 The property is jointly owned by husband and wife.
2 Exchange rate used: 1.00 USD = 660.00 CLP
3 Nonresident individuals earning Chilean-sourced income are subject to Additional Tax
(AT) at a final withholding tax rate of 35%.
Income from leasing property is subject to First Category Tax (FCT) at a flat rate of 25.50%. FCT is credited against the taxpayer´s AT liability.