Income tax on rent, worked example, in Taiwan
August 08, 2016
|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|
|Annual Income Tax Due||3,600||14,400||28,800|
|Annual Income Tax Due||US$3,600||US$14,400||US$28,800|
|Tax Due as % of Gross Income||20%||20%||20%|
Global Property Guide
1 The property is jointly owned by husband and wife.
2 Exchange rate used: 1.00 US$ = 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.