Income tax on rent, worked example, in Uruguay

April 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
Flat withholding tax rate of 10.50% 1,890 7,560 15,120
Annual Income Tax Due US$1,890 US$7,560 US$15,120
Tax Due as % of Gross Income 10.50% 10.50% 10.50%
Source:
Global Property Guide research


Notes



1 The property is jointly owned by husband and wife.

2 Exchange rate used: 1.00 US$ = 28.80 UYU

3 Although income from leasing property is taxed at a flat 12% rate, rental income is subject to a flat withholding tax rate of 10.50% levied on the gross rent. In cases where the rental income is the sole income of the individuals, advance tax payments can be considered as the definitive tax payments.