Rent Withholding Tax
Calculate withholding tax on commercial rent.
The tool calculates income tax withholding for commercial rent. The default rate is 20% and results are shown excluding VAT.
How is rent withholding calculated?
In gross-rent mode, withholding is found by multiplying the gross rent by the withholding rate, and the landlord's net collection is calculated by subtracting withholding from the gross amount. In net-rent mode, the landlord's net collection is grossed up to a pre-withholding amount, and the tax to be withheld is found as the difference.
Scope and assumptions
The tool performs the common income tax withholding calculation for commercial rent payments. The landlord's VAT status, exemptions, non-withholding tenants and special contract clauses are not included.