Global Property Guide

Financial Information for Residential Property Buyers


Tax Example: Rent

March 03, 2016

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
Less Expenses3 25% 4,500 18,000 36,000
= Taxable Income 13,500 54,000 108,00
Income Tax 4
Flat rate 20% 2,700 10,800 21,600
Annual Income Tax Due 2,100 10,800 21,600
Tax Due as % of Gross Income 15.00% 15.00% 15.00%
Thanks to:
Arab Professionals Co

DISCLAIMER: The information contained above is marketing material only and is not written tax advice directed at the particular facts and circumstances of any person and should not be relied upon. We encourage you to discuss your particular situation with us or an independent tax advisor. This information was last updated on March 03, 2016.

Notes


Arab Professionals Co is a member firm of Grant Thornton International. Grant Thornton International is not a worldwide partnership. Member firms of the international organization are independently owned and operated.

1 The property is jointly owned by husband and wife.

2 Exchange rate used: 1.00 US$ = 0.70 JOD

3 Estimated values. Income-generating expenses are deductible when calculating taxable income.

4 Rental income earned by nonresident individuals is subject to corporate income tax at a flat rate of 20%.

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