Nonresident Couple:
| Non-resident couple´s joint monthly rental income1 | €1,500 | €6,000 | €12,000 | |
| Annual Rental Income | 18,000 | 72,000 | 144,000 | |
| Less Costs2 | (2,520) | (10,080) | (20,160) | |
| Less Depreciation3 | (900) | (3,6000) | (3,600) | |
| Less Management Fees4 | (900) | (3,600) | (3,600) | |
| = Taxable Income | US$13,680 | US$54,720 | ||
| Income Tax Rate | ||||
| Up to LBP20 million | 4% | 547 | 1,062 | 1,062 |
| LBP20 million – LBP40 million | 6% | 1,592 | 1,592 | |
| LBP40 million – LBP60 million | 8% | 132 | 2,123 | |
| LBP60 million – LBP100 million | 11% | 2,919 | ||
| LBP100 million – LBP200 million | 14% | 463 | ||
| Annual Income Tax Due | US$547 | US$2,786 | US$8,159 | |
| Tax Due as % of Gross Income | 3.04% | 3.87% | 5.67% | |
| Source: Riad A. Mansour (Certified Public Accountant) | ||||
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 April 07, 2011.
Notes
1 The property is jointly owned by husband and wife, but then taxed separately (50% upon each partner).
2 Estimated costs. Common building maintenance expense is estimated at 14% of the rent.
3 Depreciation expense is deductible up to 5% of the rent.
4 Management fees are deductible up to 5% of the rent.
5 Income tax is levied at progressive rates.
For Each Spouse:
| Monthly Rental Income of the Property1 | €1,500 | €6,000 | €12,000 | |
| Annual Rental Income of each spouse | 9,000 | 36,000 | 72,000 | |
| Less Costs2 | (1,466) | (4,864) | (8,228) | |
| Less Depreciation3 | (1,200) | (6,546) | (14,400) | |
| = Taxable Income | 6,334 | 24,590 | 49,372 | |
| Less 15% Exemption4 | (950) | (3,688) | (7,406) | |
| = Net Taxable Income | 5,384 | 20,902 | 41,966 | |
| Income Tax Rates | ||||
| Up to JOD2,000 | 5% | 141 | 141 | 141 |
| JOD2,000 – JOD6,000 | 10% | 256 | 565 | 565 |
| JOD6,000 – JOD14,000 | 20% | 2,258 | 2,258 | |
| Over JOD14,000 | 25% | 285 | 5,551 | |
| Annual Income Tax Due | $397 | $3,249 | $8,515 | |
| Additional Tax | ||||
| 10% Social Service Tax5 | 40 | 325 | 852 | |
| Annual Tax Due | $437 | $3,574 | $9,367 | |
| Deduction | ||||
| Real Estate Tax6 | (720) | (2,880) | (5,760) | |
| Annual Income Tax Due | ($283) | $694 | $3,607 | |
| Tax Due as % of Gross Income | 0% | 1.93% | 5.01% | |
| Source: Riad A. Mansour (Certified Public Accountant) | ||||
Notes
1 The property is jointly owned by husband and wife, but then taxed separately (50% upon each partner). Exchange rate used: JOD 1 = US$ 1.41147.
2 Estimated costs. Maintenance and repairs, salaries, and sewer contribution are all deductible.
3 Estimated values.
4 The 10% social service tax is levied on the income tax liability.
5 The real estate tax is computed as follows = [annual rental income x 80%] x 10%.