The concerned tax with House Rent
| Calculation for One Year Income Tax for Realestates Rent | |||
|---|---|---|---|
| Items | Amount | Arabic Words | Remark |
| Rent Amount (Per Year) | 120,000.000 | ÙÙÙØ© اÙØ¥Ùجار | |
| Depreciation (Accepted By TD) | 72,000.000 | ÙØ·Ø±Ø Ø§ÙإستÙÙا٠| TD=Tax Department |
| Taxable Income | 48,000.000 | اÙخاضع | |
| First 10,000 20% | 2,000.000 | 20% 10,000 | |
| Next 20,000 25% | 5,000.000 | 25% 20,000 | |
| Next 30,000 30% | 5,400.000 | 30% 30,000 | |
| Excess 35% | - | Ùازادع٠ذÙÙ %35 | |
| Property Tax | 12,400.000 | ÙجÙÙع اÙدخ٠| |
| Jihad | 1,920.000 | جÙاد | |
| SSF | 480.000 | تضاÙÙ | |
| Investment Fund | 720.000 | إستثÙار | |
| Total Taxes | 15,520.000 | ÙجÙÙع اÙضرائب | |
| Stamp Duty | 78.000 | ضرÙبة اÙدÙغة | Stamp Tax on Income |
| Total Tax + Stamp Duty | 15,598.000 | ÙجÙÙع اÙضرائب+اÙدÙغة | |
| Net Income | 104,402.000 | صاÙ٠اÙدخ٠| |
| Net Monthly Income | 8,700.167 | اÙدخ٠اÙØ´Ùر٠| |
| Stamp Duty For the Contract | 1,212.000 | دÙغة عÙد اÙØ¥Ùجار | Stamp Tax on contract |
| Tax Percentage to the Income | 0.130 | Ùسبة اÙضرÙبة ÙإجÙاÙ٠اÙدخ٠| |
| * "Total Taxes" has to paid all by owner but usually splited by owner and tenant. | |||
The above is calculated on the rental base of LYD 10,000.- per month then yearly LYD 120,000.
Tax department accepts 60% of rent income as cost (Depreciation) and levies the Property tax on 40% of rent income. (But this percentage is not rigid and con be different with each area cusoms office.
The other Jihad, Social Security, Stamp duty you can simply look after.
In addtion to this,
Fee for real estate agent is worthy of monthly rent fee (i.e in the above case -> LYD 10,000 to real estate) and also you have to think about the lawyer cost to make the contract firmly (2~3% of the rental contract amount but negotiated).
In case of expensive one, owners are not in Libya and the lawyer does this for them but usual transaction on rent have been done with each personal only without real estate or tax or lawyer.
