Income tax on rent, worked example, in Commonwealth of Northern Mariana Islands
August 01, 2007
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1 The property is jointly owned by husband and wife, but then taxed separately (50% upon each partner).
2 Estimated values. Deductible costs are business license, management fees, repairs and maintenance.
3 Estimated values. Residential properties are depreciated over a period of 27.5 years.
4 Gross Revenue (Turnover) Tax will be assessed but it is credited against income tax. The tax depends on the annual turnover and is not a graduated tax:
|ANNUAL TURNOVERS, US$||TAX RATE|
|Up to US$5,000||nil|
|US$5,000 - US$50,000||1.5%|
|US$50,000 - US$100,000||2.0%|
|US$100,000 - US$250,000||2.5%|