Income tax on rent, worked example, in Algeria
November 23, 2016
|Non-resident couple's rental income1||US$1,500||US$6,000||US$12,000|
|Monthly Rental Income2||1,500||6,000||12,000|
|Annual Rental Income||18,000||72,000||144,000|
|Less Expenses 3||25%||4,500||18,000||36,000|
|= Taxable Income||13,500||54,000||108,000|
|Annual Income Tax Due||945||3,780||7,560|
|Tax Due as % of Gross Income||5.25%||5.25%||5.25%|
1 The property is jointly owned by husband and wife.
2 Exchange rate used: 1.00 US$ = 121.00 DZD
3 Estimated values. Income-generating expenses are deductible when calculating taxable income.
4 Rental income earned by nonresident individuals from leasing non-commercial residential properties is taxed at a flat rate of 7%.