Non-resident couple's joint monthly rental income1		US$1,500	US$6,000	US$12,000
Annual Rental Income		18,000	72,000	144,000
Less Estimated Costs2		(2,170)3	(8,680)4	(17,362)5
Less Real Estate Tax6		(713)7	(2,850)8	(5,700)9
= Taxable Income		15,117	60,470	120,938
Income Tax Rates
Income Tax Rate10	33%	4,988	19,955	39,909
Annual Income Tax Due		US$4,988	US$19,955	US$39,909
Tax Due as % of Gross Income		27.71%	27.72%	27.72%
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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 July 18, 2007.

Notes

¹ The property is jointly owned by husband and wife, but then taxed separately (50% upon each partner).

² These costs include the property’s insurance policy, realtor agency fees, lease and management insurance policy.

³Break down of estimated costs are as follows: property’s insurance policy (US$100), realtor agency fees (US$1,440), lease and management insurance policy (US$630).

⁴Break down of estimated costs are as follows: property’s insurance policy (US$400), realtor agency fees (US$5,760), lease and management insurance policy (US$2,520).

⁵Break down of estimated costs are as follows: property’s insurance policy (US$802), realtor agency fees (US$11,520), lease and management insurance policy (US$5,040).

⁶Real estate tax is levied on the cadastral value of the properties, which is estimated to be around 50% of the commercial value of the properties.

⁷The property is estimated to cost US$150,000.

⁸The property is estimated to cost US$600,000.

⁹The property is estimated to cost US$1,200,000.

¹⁰Rental income of non-resident foreigners is taxed at 33% for 2008.