Income tax on rent, worked example, in Paraguay
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|
|= Taxable Income||9,000||36,000||72,000|
|Annual Income Tax Due||1,800||7,200||14,400|
|Tax Due as % of Gross Income||10.00%||10.00%||10.00%|
Global Property Guide
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%.