Income tax on rent, worked example, in Oman
Taxation Researcher | November 06, 2017
|Non-resident couple´s joint monthly rental income1||US$1,500||US$6,000||US$12,000|
|Annual Rental Income||18,000||72,000||144,000|
|Less Expenses 3||25%||4,500||72,000||144,000|
|= Taxable Income||13,500||54,000||108,000|
|Income Tax Rate4|
|Annual Income Tax Due||405||1,620||3,240|
|Tax Due as % of Gross Income||2.25%||2.25%||2.25%|
Global Property Guide research
1 The property is jointly owned by husband and wife.
2 Exchange rate used: 1.00 US$ = 0.50 OMR
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 3%.