Income tax on rent, worked example, in Macau

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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
Less: Expenses 3 10% 1,800 7,200 14,400
Less: Standard Deduction4 438 438 438
= Taxable Income 15,763 64,363 129,163
Income Tax5
Flat rate 10% 1,576 6,436 12,916
Annual Income Tax Due 1,576 6,436 12,916
Tax Due as % of Gross Income 8.76% 8.94% 8.97%
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Notes


1 The property is jointly owned by husband and wife.

2 Exchange rate used: 1.00 US$ = 8.00 MOP

3 A standard deduction of 10% of the gross income is allowed to cover income-generating expenses.

4 A standard annual deduction of MOP3,500 (US$438) is allowed for all properties.

5 Rental income is taxed at a flat rate of 10%.