Income Tax

Recently, I put up my residential property for rent as I would be going overseas shortly for a couple of year. I had to incur advertising. I had also to seek legal advice tenancy agreement. Can I deduct such expenses against my rental incomes for income tax purposes? Section of the income tax act govern deduction of expenses wholly and exclusively incurred in the production of the income are deductible. The advertising and legal fees in this case are expenses incurred not in the production of the rental income but in putting you in a position to earn the income i.e. securing the first tenancy from witch the income then arises. As such the expenses are not deductible under section 14. Once the tenancy commenced, revenue expenses such as fire insurance premiums, repairs and property tax incurred and legal fees for renewal of tenancy agreements are deductible against the rentals.

Corporate tax is the highest tax in the world. Some countries have high taxes corporate. For example is New Zealand, Spain, and Australia, they all have a corporate taxes average of 30%. In 1986, the corporate tax rate in New Zealand is 48% and two years later (1988) reduced to 28%. A year later (1989) was raised again to 33%. This tax rate lasted for nine years. In the Prime Minister John Key, precisely in 2008, the corporate taxes return to 30%. In 2008, Spain has a corporate tax rate same as New Zealand, which is 30%. The highest corporate tax rate is in 2006, which is 35%.