Benefit from Tax Rebates on income from Long Term Residential Leasing
9 March 2021
Legal Notice 258 of 2020 introduced rules which provide for a tax rebate for income from residential leases. This rebate is applied if the rental income is taxed at 15% as stipulated in the Income Tax Act.
The rebate only applies to lease contracts which have a period of at least two years. The two factors considered when calculating the rebate applicable are the duration of the lease and the number of bedrooms.
|Duration of Lease||Number of Bedrooms||Tax Rebate|
|At least 2 years but less than three years||1|
|Three years or more||1|
The rebate is capped at 15% of the income derived from the lease. In years where the rent does not cover a whole calendar year, the rebate is applied pro rata based on the number of days. Applications for rental income accrued during the previous year must be made by the 30th of April of the following year.
This means that you are still in time to benefit from a tax rebate for your 2020 rental income if you apply by the 30th of April 2021. Contact us today for more information about this scheme!