Income tax on rent, worked example, in Aruba
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| Non-resident couple's joint monthly rental income1 | US$2,500 | US$6,000 | US$12,000 |
| Annual Rental Income | 18,000 | 72,000 | 144,000 |
| Less: Tax-Category Deductions2 | 11,377.53 | 11,377.53 | 11,337.53 |
| Less Depreciation3 | |||
| = Taxable Income | 6,642.47 | 60,622.47 | 132,622.47 |
| Income Tax Rates | |||
| Progressive tax rates4 | 559 | 14,815.98 | 52,302.77 |
| Annual Income Tax Due | US$559 | US$14,815.98 | US$52,302.77 |
| Tax Due as % of Gross Income | 3.11% | 14.70% | 14.70% |
Thanks to: |
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Notes
1 The property is jointly owned by husband and wife. Exchange rate used: US$1 = AWG1.7900.
2 A standard deduction of US$11,378 is applicable on all taxable income for income tax purposes.
3 Individuals owning real property cannot deduct depreciation expense or capital allowance.
4 Income tax is levied at progressive rates in Aruba. Married couples filing jointly are taxed under the Schedule II income tax rates.
Income Tax |
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| TAXABLE INCOME, AWG (US$) | |
|
| Schedule I | Schedule II | |
| Up to 7,118 (US$3,977) | 7.00% | 7.40% |
| 7,119 - 16,759 (US$9,363) | 9.55% | 10.05% |
| 16,759 - 27,555 (US$15,394) | 13.70% | 14.45% |
| 27,555 - 39,888 (US$22,284) | 18.00% | 19.00% |
| 39,888 - 53,593 (US$29.940) | 23.50% | 24.80% |
| 53,593 - 68,994 (US$38,544) | 29.00% | 30.60% |
| 68,944 - 83,020 (US$46,380) | 34.10% | 35.95% |
| 83,020 - 98,189 (US$54,854) | 38.00% | 40.10% |
| 98,189 - 117,528 (US$65,658) | 41.75% | 44.05% |
| 117,528 - 145,448 (US$81,256) | 43.20% | 45.60% |
| 145,448 - 186,683 (US$104,292) | 46.25% | 48.80% |
| 186,683 - 250,446 (US$139,914) | 52.00% | 54.85% |
| 250,446 - 296,956 (US$165,897) | 54.20% | 57.20% |
| Over 296,956 (US$165,897) | 55.85% | 58.95% |
| Source: Global Property Guide | ||
