Sudan Rental Income Tax Guide — ضريبة الدخل من الإيجارات
the taxation of rental income from real estate in Sudan for 2026. The guide covers: the rental income tax rate — rental income is aggregated with other income and taxed at progressive PIT rates (0–15%) for individuals or 30% for companies; the standard expense deduction of 30–40% of gross rent; the annual property tax at ~0.5% of assessed value; the commercial versus residential treatment; and the non-resident landlord withholding tax rules.
Rental Income Tax — ضريبة دخل الإيجار (Individuals)
- Taxed at progressive PIT rates — 0–15%: Rental income is aggregated with other income (employment, business) and taxed at the individual's marginal PIT rate (0% up to SDG 3,000/month, 5% on SDG 3K–5K, 10% on SDG 5K–10K, 15% above SDG 10K).
- Standard expense deduction — 30–40%: A standard deduction of 30–40% of gross rental income is allowed for maintenance, management, insurance, and other expenses. Alternatively, actual expenses may be deducted if properly documented.
- Filing obligation: Rental income must be declared in the annual personal income tax return.
- Exemption threshold: Small rental income below an annual threshold (adjusted periodically) may be exempt.
Annual Property Tax — ~0.5%
- Rate — ~0.5% of assessed value: The annual property tax (ضريبة العقارات) is imposed at approximately 0.5% of the government-assessed value of the property. The assessment is conducted by state government valuation committees.
- Who pays: The property owner is liable for the tax, regardless of whether the property is rented, vacant, or owner-occupied.
- Exemptions: Properties below a minimum threshold value, religious buildings, and agricultural land are exempt.
Commercial vs Residential — الإيجار التجاري مقابل السكني
- Commercial property: Commercial rental income is subject to the same progressive PIT rates for individuals or 30% corporate rate. The expense deduction for commercial property may be more favourable (higher actual expenses typically allowed).
- Commercial property tax: The annual property tax for commercial premises is applied at the same ~0.5% rate but on a higher assessed value compared to residential properties.
- VAT on commercial rent: Commercial rent is subject to 17% VAT (ضريبة القيمة المضافة على الإيجار التجاري). VAT-registered commercial tenants may recover input VAT on rent. Residential rent is NOT subject to VAT.
- Short-term rentals: Short-term rental properties (furnished apartments for tourism) are treated as commercial activity, subject to both rental income tax and VAT.
Non-Resident Landlord — المالك غير المقيم
- Withholding tax on gross rent: Non-resident landlords are subject to withholding tax on gross rental income paid by the Sudanese tenant. The tenant (or property manager) acts as the withholding agent.
- No expense deduction for non-residents: Unlike resident landlords, non-residents are generally taxed on gross rent without the benefit of the standard expense deduction.
- Treaty relief: Non-resident landlords from DTA countries may claim reduced withholding tax rates under applicable double tax treaties.