# Income tax on rent, worked example, in Tunisia

Taxation Researcher | May 20, 2021

 Non-resident couple´s rental income1 US\$1,500 US\$6,000 US\$12,000 Annual Rental Income (2) 18,000 72,000 144,000 Less Expenses (3) (5,400) (21,600) (43,200) Less Real Estate Tax (4) (360) (1,440) (2,880) = Taxable Income US\$12,240 US\$48,960 US\$97,920 Income Tax 4 Up to TND5.000 nil - - - TND5,000- TND20,000 26% 3,900 3,900 3,900 TND20,000 - TND30,000 28% 1,254 2,800 2,800 TND30,000 - TND50,000 32% 6,400 6,400 Over TND50,000 35% - 8,386 25,522 Annual Income Tax Due 5,154 21,486 38,622 Tax Due as % of Gross Income 28.64% 29.84% 26.82% Thanks to:

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Notes

1 The property is jointly owned by husband and wife, but in Tunisia, married couples are taxed separately (50% upon each partner). So the calculated figures in the tax bands reflect the tax rates applied to their separate incomes, with the resulting calculated individual tax total multiplied by two (to reflect the total net income derived from the properties). So for instance, in the US\$1,500 monthly income band, each spouse has an income of TND12,240, which falls within the TND10,000 - TND20,000 tax band, not into the TND20,000-TND50,000 band.

2 Exchange rate used: 1.00 US\$ = 2 .00 TND

3 Estimated values.

4 Individuals are subject to progressive income tax rates in Tunisia.

5 Rental income earned by nonresident individuals is taxed at progressive rates.

### INCOME TAX

TAXABALE INCOME, TND (US\$)
RATE
Up to 5,000 (US\$ 2500)
0%
5,000 - 20,000 (US\$10,500)
26% on band over (US\$2,500)
20,000 - 30,000 (US\$15,000)
28% on band over (US\$10,500)
30,000 - 50,000 (US\$25,000)
32% on band over (US\$15,000)
Over 50,000 (US\$25,000)
35% on band over (US\$25,000)