Tax Example: Rent

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
Flat rate 3% 405 1,620 3,240
Annual Income Tax Due 405 1,620 3,240
Tax Due as % of Gross Income 2.25% 2.25% 2.25%
Source:
Global Property Guide research


Notes


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%.

 

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