Income tax on rent, worked example, in Uruguay
September 15, 2016
|Non-resident couple´s joint monthly rental income1||US$1,500||US$6,000||US$12,000|
|Annual Rental Income||18,000||72,000||144,000|
|= Taxable Income||18,000||72,000||144,000|
|Income Tax Rates2|
|Flat withholding tax rate of 10.50%||1,890||7,560||15,120|
|Annual Income Tax Due||US$1,890||US$7,560||US$15,120|
|Tax Due as % of Gross Income||10.50%||10.50%||10.50%|
Global Property Guide research
1 The property is jointly owned by husband and wife.
2 Exchange rate used: 1.00 US$ = 28.80 UYU
3 Although income from leasing property is taxed at a flat 12% rate, rental income is subject to a flat withholding tax rate of 10.50% levied on the gross rent. In cases where the rental income is the sole income of the individuals, advance tax payments can be considered as the definitive tax payments.