Income tax on rent, worked example, in Libya
January 07, 2019
Nonresident Couple:
| Non-resident couple´s joint rental income1 |
|
|
|
| Monthly Rental Income 2 |
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 |
|
|
|
| flat rate |
20% |
2,700 |
10,800 |
21,600 |
| Annual Income Tax Due |
2,700 |
10,800 |
21,600 |
| Tax Due as % of Gross Income |
15.00% |
15.00% |
15.00% |
| Source: Riad A. Mansour (Certified Public Accountant)
|
Notes
1 The property is jointly owned by husband and wife.
2 Exchange rate used: 1.00 US$ = 1.40 LYD
3 Estimated values. Income-generating expenses are deductible when calculating
taxable income.
4 Rental income earned by nonresident individuals is taxed at a flat rate of 20%.
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