The Treasury has various ways to declare rental tax. A guideline regarding this has been put out by the General Directorate of Taxation. Additionally, the Ministry of Finance is in a campaign to clarify the changes.
The situation of the rentals as well as the owners’ preference come into play when deciding which way to declare and pay tax on rentals. In most cases, it is paid monthly but some situations warrant deducting it from the annual declaration instead.
Both individuals and legal entities with income from real estate rentals must now pay tax of 15% on 85% of the total received. This includes rentals of premises, houses and buildings.
If a person has rentals that are linked to their primary business the rental income must be included in the total taxable income. The declaration must be submitted and paid monthly but than the 15% paid can be deducted at the end of the year. Any rentals not linked to the primary job are treated separately.
If a person or entity has only rentals and no other income they must pay 30% of all profits annually. This option is best for those with many deductible expenses. To qualify, there must be at least one formal employee.
No comments:
Post a Comment