Income tax on rent, worked example, in Taiwan
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| Non-resident couple's rental income1 | ||||
| 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 | |
| Income Tax3 | ||||
| Flat Rate | 20% | 3,600 | 14,400 | 28,800 |
| Annual Income Tax Due | 3,600 | 14,400 | 28,800 | |
| Other Taxes3 | ||||
| VAT4 | 5% | 900 | 3,600 | 7,200 |
| Annual Income Tax Due | US$3,600 | US$14,400 | US$28,800 | |
| Tax Due as % of Gross Income | 20% | 20% | 20% | |
| Source: Global Property Guide |
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Notes
1 The property is jointly owned by husband and wife.
2 Exchange rate used: 1.00 US$ = 32.00 TWD
3 Gross rental income earned by nonresidents is taxed at a flat rate of 20%.
4 Gross rental income is also subject to Value Added Tax (VAT), levied at a flat rate of 5%. Business Turnover Tax of 1% may be charged for small scale enterprises in lieu of VAT if rent is paid directly to an individual, not a company.
