Tax Example: Rent
December 04, 2017
|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 Expenses 3||25%||4,500||18,000||36,000|
|= Taxable Income||13,500||54,000||108,000|
|Income Tax 4|
|Flat Rate 10%||1,350||5,400||10,800|
|Annual Income Tax Due||1,350||5,400||10,800|
|Tax Due as % of Gross Income||7.50%||7.50%||7.50%|
|Source:Global Property Guide research|
1 The property is jointly owned by husband and wife
2 Exchange rate used: 1.00 US$ = 2,115.00 TZS
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 10%.