Income tax on rent, worked example, in Argentina
November 07, 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||10,800||43,200||86,400|
|Annual Income Tax Due||2,646||10,584||21,168|
|Tax Due as % of Gross Income||14.70%||14.70%||14.70%|
1 The property is jointly owned by husband and wife.
2 Exchange rate used: 1.00 US$ = 15.00 ARS
3 The 40% standard deduction accounts for income-generating expenses
4 Nonresidents are taxed at a flat rate of 24.50% on 60% of gross income [(60% of gross income)*24.50%]; an effective rate of 21% on gross income (21% * gross income). This income tax is withheld by the tenant.