Income tax on rent, worked example, in United Arab Emirates
Taxation Researcher | September 07, 2016
|Non-resident couple´s joint monthly rental income1||US$1,500||US$6,000||US$12,000|
|Monthly Rental Income2||1,500||6,000||12,000|
|Annual Rental Income||18,000||72,000||144,000|
|= Taxable Income||18,000||72,000||144,000|
|No tax on rental income||-||-||-|
|Tax on leased properties4||5%||900||3,600||7,200|
|Annual Income Tax Due||900||3,600||7,200|
|Tax Due as % of Gross Income||5%||5%||5%|
Global Property Guide research
1 The property is jointly owned by husband and wife.
2 Exchange rate used: 1.00 US$ = 3.68 AED
3 There are no income taxes levied on rental income.
4 There is a 5% tax levied on leases of residential properties in all Emirates, except Abu Dhabi.