Revenue – Necessary Costs = Rental Profit
Income tax is calculated based on its rental profit.
※Examples of necessary costs: Property Tax, City Planning Tax, Managing Fee, Costs associated with finding new tenants, Depreciation fees, and interests etc.
The government applies progressive taxation so as rental profit increases, income tax also rises.
However it can be consolidated where aggregation of profit and loss from other types of income is possible.
Income Tax Rapid Calculation Table
10 million x 33% – 1.53 million = 1.764 million would be the tax amount.
※From 2013 to 2037 special income tax for reconstruction must be filed and paid along with income tax.