On the 23rd of June 2020, the Private Residential Leases (Tax Rebate) Rules, 2020, were published. These rules are contained in Legal Notice 258 of 2020.
These rules apply to income derived on or after the 1st of January 2020 from a private residential lease that has a term of at least two years. The private residential lease must have been registered with the Housing Authority.
In the year immediately preceding the year of assessment, a person who derives rental income taxed at 15% on the gross rental income under Article 31D(2) of the Income Tax Act shall be entitled to a tax rebate. The rebate shall be granted in the form of a deduction from the tax chargeable on the rental income from each relevant private residential lease.
The rebate for any year regarding a lease cannot exceed 15% of the rent derived in that year from that lease. A claim for the tax rebate allowable under these rules shall be made on the form prescribed and submitted together with the payment of the tax due.