Global Property Guide

Financial Information for the Residential Property Buyer


Tax Example: Rent

Last Updated: April 28, 2017

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
Less Standard Costs2 (50%) (9,000) (36,000) (72,000)
= Taxable Income 9,000 36,000 72,000
Income Tax Rates
Up to EGP 6,500 0% - - -
EGP6,500 - EGP 30,000 10% 676 810 810
EGP30,000 - EGP 45,000 15% - 776 776
EGP45,000 - EGP 200,000 20% - 4,097 11,297
Over EGP 200,000 22.50% - - -
Annual Income Tax Due US$676 US$5,683 US$12,883
Tax Due as % of Gross Income 3.75% 7.89% 8.95%
Thanks to:
Moore Stephens

Notes


1 The property is jointly owned by husband and wife.

2 Exchange rate used: 1.00 USD = 5.80 EGP

3 Estimated values. Income-generating expenses are deductible when calculating taxable income. The maximum deduction allowed is 50% of the gross rent.

4 Rental income earned by nonresident individuals is taxed at progressive rates.

INCOMTE TAX

TAXABLE INCOME, ECD (US$) TAX RATE
Up to 6,500 (US$ 1,121) 0%
6,500 - 30,000 (US$ 5,172) 10%
30,000 - 45,000 (US$ 7,759) 15%
45,000 - 200,000 (US$ 34,483) 20%
Over 200,000 (US$ 34,483) 22.50%

 

Comments

Alpana | August 16, 2010

Please let me know how did you divide taxable income in below bracket? How you splited 9000 in 3500,3500 and 2000
@ 10% 3500
@15% 3500
@20% 200

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