Tax Example: Rent

October 12, 2018

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 8,000 20,000 30,000
Depreciation4 2,000 30,000 40,000
= Taxable Income 8,000 22,000 74,000
Income Tax5
Flat rate 25% 2,000 5,500 18,500
Annual Income Tax Due 2,000 5,500 18,500
Tax Due as % of Gross Income 11.11% 12.85% 12.85%
Source:
Global Property Guide research

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 February 2, 2016.

Notes


1 The property is jointly owned by husband and wife.

2 Exchange rate used: 1.00 US$ = 22.60 HNL

3 Estimated values. Income-generating expenses are deductible when calculating taxable income.

4 Estimated values.

5 Rental income earned by nonresident individuals is taxed at a flat rate of 25%.

 

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