Tax Example: Rent

November 16, 2017

Non-resident couple's joint monthly rental income1
Monthly Rental Income2 1,500 6,000 12,000
Annual Rental Income 18,000 72,000 144,000
Less: Expenses3 50% 9,000 36,000 72,000
= Taxable Income 9,000 36,000 72,000
Income Tax4
Flat rate 20% 1,800 7,200 14,400
Annual Income Tax Due 1,800 7,200 14,400
Tax Due as % of Gross Income 10.00% 10.00% 10.00%
Source:
Global Property Guide

Notes


1 The property is jointly owned by husband and wife.

2 Exchange rate used: 1.00 US$ = 5,700.00 PYG

3 Taxable income is calculated as 50% of gross income.

4 Rental income earned by nonresident individuals is taxed at a flat rate of 20%.

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