In terms of Article 31D of the Income Tax Act, any persons in receipt of rental income from a residential tenement (being a tenement that is used as a residence or a garage by an individual or individuals) during calendar year 2015 may opt to tax their rental income at a final flat rate of 15% on the gross rental income in lieu of declaring the rental income received in their tax return and be subject to tax at the progressive rates of tax in the case of individuals or 35% in the case of companies and other bodies of persons. To benefit from this rate, the taxpayer must submit the relative TA24 form and pay the tax to the Inland Revenue Department by not later than 30th June, 2016.
How we can assist?
Our tax team can advise taxpayers to assess the most tax efficient method of taxing their rental income. We can also assist taxpayers in filling in the necessary form to be submitted with the Inland Revenue Department by 30th June 2016 and effect the relative tax payment.
