Income tax on rent, worked example, in Ecuador
July 25, 2018
|Non-resident couple´s joint monthly rental income1||US$1,500||US$6,000||US$12,000|
|Annual Rental Income||18,000||72,000||144,000|
|= Taxable Income||18,000||72,000||144,000|
|Income Tax Rates2|
|Annual Income Tax Due||US$4,500||US$18,000||US$36,000|
|Tax Due as % of Gross Income||25%||25%||25%|
1 The property is jointly owned by husband and wife.
2 Exchange rate used: 1.00 USD = 1.00 USD
4 Rental income earned by nonresident individuals is taxed at a flat rate of 25%.