Information for Rent House Owners

  • Rent tax is tax charged on income derived from residential properties. Rent tax is administered under the Rent Tax Act No. 30 of 1986 (CAP 196).
  • Returns on commercial rent that do not exceed the VAT threshold of 4 million are subject to pay rent tax as well.
  • Rent tax is charged within a six month period at a rate of 12.5%. There are two chargeable periods in which rent tax is charged.  

           1st Chargeable Period:                                    

  • 01 December of any year – 31st of May in the immediately succeeding year 

         (Tax due on the 28th of June)  

          2nd Chargeable Period:                                      

  • 01 June of any year – 30th of November on that year

          (Tax due on the 28th of December

  • Liable Taxpayers:

    1.  Natural Person: 

              - Refers to the individual who owns the property that is rented out, whereby they are liable to pay rent tax. 

              -  For every natural person, there’s a threshold of VT 200,000. 

              -  This means that total rent income within six months period that is less than VT 200,000, is exempt from

                 rent tax. 

              -  For those individual whose total rent income within six months period is more than VT 200,000, rent tax

                 will be charged on the amount exceeding the threshold (Taxable Rental Income).

               

              Calculation of rent tax

              Rent Tax = (Total rent income for six months – Threshold) x 12.5%

                      e.g.  = VT 300, 000 – 200, 000

                              = VT 100,000 x 12.5%

                              = VT 12, 500

     2. Limited Company 

             -  Refers to a company that owns a property being rented out.

             -  There is no threshold that applies in this case.

             -  Rent tax is 12.5% on the total rent income for a six month period.

 

            Calculation of rent tax

             Rent Tax  = Total rent income for 6 months x 12.5%

                      e.g. = VT 300, 000 x 12.5%

                             = VT 37, 500

     3. Trustee 

               -  Refers to any trustee, guardian, curator, manager or any other person having the direction, control 

                  or management of any land or property on behalf of any person.

               -  There are two types of trustees;

                             1. Trustee as an individual

                             2. Trustee as a company

               -  Rent tax is 12.5% depending on the type of trustee lodging the return for a six month period.

 

        Calculation of rent tax

  • Trustee as an individual

          Threshold of VT 200, 000 applies in this case.

          Rent Tax = (Total rent income for 6 months – Threshold) x 12.5%

                 e.g. = VT 300, 000 – 200, 000

                       = VT 100, 000 x 12.5%

                       = VT 12, 500 

 

  • Trustee as a company

           Rent Tax = Total rent income for 6 months x 12.5%

                  e.g.  = VT 300, 000 x 12.5%

                          = VT 37, 500 

 

  • Penalty  fee for Late Returns: 

            -  25% per annum

            -  Penalty fee = Rent Tax x 25% x no. of days late / 365 days

                         e.g.   = VT 200, 000 x 25% x 10/365

                                  = VT 1,370

            -  Total outstanding rent tax = VT 200, 000 + VT 1,370

                                                         = VT 201, 370

  •  Those exempt from rental tax are;

            -  Members of parliament

            -  Religious institutions    

The forms can also be collected at the office.

General Enquiries

Constitution Building, Lini Highway
PMB 9012
Port Vila, VANUATU.

Phone: (+678) 33010
Fax: (+678) 22597