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Capital Allowances on Rental Property

id : 27   cat : Capital Allowances   
Just wanted advice if a company is buying asset for rental income can the company get any tax benefits e g capital allowance
Asked by : Taher Kapacee
 DOQ : 2016-04-24 21:00:00
   Taher Kapacee

Answer

Industrial Building Allowance (IBA)

IBA is generally not available for RESIDENTIAL property. However 5% is available for low cost residential housing. Constructed in

  • a planned development area and

  • must be approved by Minister responsible for housing.

If property is furnished Wear & Tear allowance on furniture and linen may be allowed. Expenses such as security, cleaning, repairs(to maintain rent), interest, etc are allowable.

From 2016 January a withholding tax called Residential Rental Income (RRI) @ 10% on gross rent is effective. This tax is final & payable by 20th of the month.
Answered by : Admin
 DOA : 2016-04-24
   Admin

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