Income tax on rent, worked example, in Venezuela

October 13, 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
Less Cost2      
Administrative Expenses (1,800) (7,200) (14,400)
Repairs and Maintenance (3,000) (15,000) (20,000)
Real Estate Tax (1,200) (4,608) (9,071)
Municipal Tax (45) (173) (340)
Less Depreciation3 (225) (900) (1,800)
= Taxable Income 11,730 44,119 98,389
Income Tax Rates4
Flat Rate 34% 3,988 15,001 33,452
Annual Income Tax Due US$3,988 US$15,001 US$33,452
Tax Due as % of Gross Income 22.16% 20.83% 23.23%
Thanks to:
Grant Thornton Venezuela

DISCLAIMER: The information contained above is marketing material only and is not written tax advice directed at the particular facts and circumstances of any person and should not be relied upon. We encourage you to discuss your particular situation with us or an independent tax advisor. This information was last updated on August 11, 2010.


Notes


Gomez, Guillen, Garnier y Asociados is a member firm of Grant Thornton International. Grant Thornton International is not a worldwide partnership. Member firms of the international organization are independently owned and operated.

1 The property is jointly owned by husband and wife.

2 Estimated values. Only actually incurred expenses are deductible such as administrative expenses (maximum of 10%), repairs and maintenance, insurance, real estate tax, and municipal tax.

3 Cost-of-purchase depreciation (capital allowance) is not deductible.

4 Payments could be subject to withholding (34%).



Non-Resident Couple (Ownership Through a Local Company):


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
Less Cost2      
Administrative Expenses (1,800) (7,200) (14,400)
Repairs and Maintenance (3,000) (15,000) (20,000)
Real Estate Tax (1,200) (4,608) (9,071)
Municipal Tax (45) (173) (340)
Less Depreciation3 (225) (900) (1,800)
= Taxable Income 11,730 44,119 98,389
Income Tax Rates4
Flat Rate 34% 1,733 7,432 25,405
Annual Income Tax Due US$1,733 US$7,432 US$25,405
Tax Due as % of Gross Income 9.63% 10.32% 17.64%
Thanks to:
Grant Thornton Venezuela


Notes


1 The property is jointly owned by husband and wife through a local company.

2 Estimated values. Only actually incurred expenses are deductible such as administrative expenses (maximum of 10%), repairs and maintenance, insurance, real estate tax, municipal tax, and LOCTI.

3 Cost-of-purchase depreciation (capital allowance) is not deductible.

4 Taxable income is subject to corporate tax at progressive rates.



 

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