Income tax on rent, worked example, in Libya

July 20, 2017

Nonresident Couple:


Non-resident coupleĀ“s joint rental income1
Monthly Rental Income 2 1,500 6,000 12,000
Annual Rental Income 18,000 72,000 144,000
Less Expenses3 25% 4,500 18,000 36,000
= Taxable Income 13,500 54,000 108,000
Income Tax4
flat rate 15% 2,025 8,100 16,200
Annual Income Tax Due 2,025 8,100 16,200
Tax Due as % of Gross Income 11.25% 11.25% 11.25%
Source: Riad A. Mansour (Certified Public Accountant)

Notes


1 The property is jointly owned by husband and wife.

2 Exchange rate used: 1.00 US$ = 1.40 LYD

3 Estimated values. Income-generating expenses are deductible when calculating taxable income.

4 Rental income earned by nonresident individuals is taxed at a flat rate of 15%.


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