Real estate rental tax has reached a record high/exceptional cases of exemption from rental tax

According to Tejarat News, according to the law of direct taxes, the income from renting some properties is included Rent tax It is possible that according to the announcement of the Tax Affairs Organization, the income for property rental tax in 1400 is equivalent to 1100 billion tomans.

ISNA reported, real estate rental tax is one of the three types of real estate income tax, which is levied on the income of natural and legal entities for renting real estate in Iran.

The taxable income of properties that are rented out is the total rental property, both cash and non-cash, after deducting 25% for expenses and depreciation and the owner’s obligations towards the rental item; Therefore, 75% of real estate rental income is taxable and 25% is tax-free.

Also, the property whose rental income is subject to rent tax can be residential, office or commercial property. Of course, the use of the property, including its relative to the related laws tax It has no effect on property rental income, and this tax is only applied to the rental amount. Tax on rental income is related to property owners and not to tenants.

In the meantime, according to the announcement of the Tax Affairs Organization, all persons who have leased their property or properties and have income from it, are subject to tax and had until the end of August of this year to apply by referring to the system. my.tax.gov.ir Proceed to submit the property rental income tax declaration for the year 1400. Of course, every taxpayer included in the e-declaration of property rental income tax must submit a declaration for all the properties rented in the entire country.

In this context, according to the announcement of the Tax Affairs Organization to ISNA, the owners of rental properties in 2019 filled the equivalent of 880,000 declarations, which resulted in 800 billion Tomans in tax income from this place. Also, for the performance of the year 1400, the property rental tax was 800,000 properties equal to 1,100 billion tomans.

It should be noted that there are two types of real estate rent tax calculation, first hand and second hand tax, and the difference between these two calculations is that the source of tax on first hand rent is 75% of the annual rent, while this source is for Second-hand rent by the tenant is the difference between the rent paid by him to the owner and the rent received by him from the second tenant.

The property rental income tax rate in 1400 is as follows:

On the other hand, according to the note of Article 131 of the Law on Direct Taxes, for every 10% increase in the declared taxable income of the persons subject to this article compared to their declared taxable income of the previous year, one percentage point and a maximum of five percentage points will be reduced from the mentioned rates. The condition for enjoying this discount is to settle the tax debt of the previous year and submit the relevant tax return within the deadline announced by the Tax Administration.

Exemption from property rental income tax in 1400

According to this report, some properties from tax They are exempt from rental income, which are listed below:

1. Properties that are inhabited by the owner’s father or mother or spouse or children or ancestors or dependents.

2. Properties for rent in Tehran up to 150 square meters and in other places up to 200 square meters.

3. Owners of residential complexes with more than three rental units that are built or will be built in compliance with the housing consumption pattern as announced by the Ministry of Housing and Urban Development are exempted from 100% tax on rental property income during the rental period.

4. If the owner does not have any income other than renting his property, he is exempt from paying taxes up to the amount of tax exemption that is announced every year, the ceiling and floor of which is announced by the Tax Administration.