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Private Residential Leases - Tax Rebate

On the 23rd of June 2020, the Private Residential Leases (Tax Rebate) Rules, 2020 were published. These rules are contained in Legal Notice 258 of 2020.

These rules apply to income derived on or after 1stJanuary2020, from a private residential lease which has a term of at least two years. The private residential lease must have been registered with the Housing Authority.

A person who, in the year immediately preceding the year of assessment, derives rental income which is taxed under Article 31D(2) of the Income Tax Act, that is, at fifteen percent on the gross rental income, shall be entitled to a tax rebate. The rebate shall be granted in the form of a deduction from the tax chargeable on the rental income from each relevant private residential lease.

The rebate for any year in respect of a lease cannot exceed fifteen percent (15%) of the rent derived in that year from that lease.

A claim for the tax rebate allowable under these rules shall be made on the form prescribed and shall be submitted together with the payment of the tax due.

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