COVID-19 update: Vanuatu is currently Covid-free. However, international travel restrictions are in place at the border. 

There are no restrictions on the movement of freight. For more information, visit the official COVID-19 website.

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 [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%

Example

Rent Tax = VT 300, 000 – 200, 000

                = VT 100,000 x 12.5%

                = VT 12, 500

 

  1. 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%

Example

   Rent Tax = VT 300, 000 x 12.5%

                   = VT 37, 500

 

  1. 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

  1. 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%

Example

   Rent Tax = VT 300, 000 – 200, 000

                  = VT 100, 000 x 12.5%

                  = VT 12, 500 

 

  1. Trustee as a company

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

Example

   Rent Tax = VT 300, 000 x 12.5%

                   = VT 37, 500 

 

 

(Please click here to access the form)

 

LATE PENALTY

 If you fail to file your Rent Tax on time, or your fail to make payment of your Rent Tax return late, penalties and/or interest will be charged as follows:

  1. If you file late:
  • A late filing penalty of VT 30, 000 (for an individual) or VT 50, 000 (for an entity),
  • For each day that the return remains outstanding, a late filing penalty of VT 3, 000 (for an individual) or VT 5,000 (for an entity).
  1. If you pay late:
  • A late payment penalty of 5% of the total that should have been paid,
  • For each day until payment is made, late payment interest at a daily rate of 20% per annum.

 

THOSE EXEMPT FROM RENTAL TAX 

            -  Members of parliament

            -  Religious institutions    

 

Click here to access Rent Taxation Return Form

Subscribe

Where to find us?

Address:
La Casa D'Andrea E Luciano Building, Rue Pierre Lamy, PMB 9012, Port Vila, VANUATU
Phone Number
+678 33010

Follow us