Persons who receive rental income from tenements leased to individual/s as a residence or a garage are required to compile the TA 24 Declaration form in order to benefit from the 15% tax rate on the said income.
The following criteria for the tenement must be satisfied to qualify for the 15% tax rate:
(1) The tenement must not be a commercial tenement;
(2) The tenement has to consist of either a dwelling house or part thereof which is to be occupied as a home or residence by the occupier or a garage;
(3) For persons who derive rental income from the letting of more than one residential property, the 15% tax rate option has to be applied to the total rental income received.
• The 15 % tax is final and such income should not be declared in the tax return. No set-off or refund can be claimed as a result of this tax;
• Declaration is to be signed by the persons opting to pay 15% tax on gross rental income.
Companies can also benefit from the Final Withholding tax on Rental Income if the tenement satisfies the above criteria. Furthermore, as from year of assessment 2017 this tax rate will also be applied to rents received from commercial lets.
Payment is to be made by not later than the 30th June of the year following the relevant year.
Contact us for further assistance.
The Management & Staff
Parker Randall Turner