Tax Example: Rent

October 22, 2018

Non-resident couple´s rental income1
Monthly Rental Income2 1,500 6,000 12,000
Annual Rental Income 18,000 72,000 144,000
Less: Expenses3 25% 4,500 18,000 36,000
= Taxable Income 13,500 54,000 108,000
Income Tax4
Up to IRR 30,000,000 15% 138 138 138
IRR30,000,000 - IRR 100,000,000 20% 431 431 431
IRR100,000,000 - IRR 250,000,000 25% 1,154 1,154 1,154
IRR250,000,000 - IRR 1,000,000,000 30% 1,742 6,923 6,923
Over IRR 1,000,000,000 35% - 8,131 27,031
Annual Income Tax Due 3,465 16,777 35,677
Tax Due as % of Gross Income 19.25% 23.30% 24.78%


Notes


1 The residential property is jointly owned by husband and wife.

2 Exchange rate used: 1.00 US$ = 32,500.00 IRR

3 A fixed-deduction of 25% of the gross income is extended to all taxpayers to account for income-generating expenses.

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

INCOMTE TAX

TAXABLE INCOME, IRR (US$) TAX RATE
Up to 30,000,000 (US$ 923 ) 15%
30,000,000 - 100,000,000 (US$ 3,077 ) 20%
100,000,000 - 250,000,000 (US$ 7,692 ) 25%
250,000,000 - 1,000,000,000 (US$ 33,769 ) 30%
Over 1,000,000,000 (US$ 33,769 ) 35%
 

Comments

Be the first to comment on this article!

Login or Register to submit a comment!
In order to promote open and spam-free conversations, Global Property Guide moderates commetns on all articles. You can expect that your comment will be published within 24 hours.