Activity 10.3 Income tax Use the tables given in this unit to answer the questions. \( \begin{array}{lll}\text { 1. Calculate the tax payable according to the Income Tax Table for each of the following salaries per } \\ \begin{array}{lll}\text { a) R90 } 000 & \text { b) R310 } 000 & \text { c) R600 } 000 \text {. }\end{array} \\ \text { 2. Bongani is } 26 \text { years old and earns a salary of R230 } 000 \text { per year. } \\ \begin{array}{ll}\text { a) Determine the tax payable according to the tax table. } \\ \text { b) Determine the tax rebate to be deducted from the answer in a). } \\ \text { c) Determine the amount of tax Bongani has to pay. }\end{array}\end{array} \)

To calculate the income tax payable based on the provided salaries and Bongani's specific situation, we'll use the South African Income Tax Tables for the 2023 tax year. Below are the steps and calculations for each part of the activity. --- ### **1. Calculate the Tax Payable According to the Income Tax Table** **a) Salary: R90 000** - **Tax Bracket:** Up to R237 100 - **Tax Rate:** 18% **Calculation:** \[ \text{Tax Payable} = 18\% \times R90{,}000 = 0.18 \times 90{,}000 = R16{,}200 \] **Answer:** **R16 200** --- **b) Salary: R310 000** - **Tax Bracket:** R237 101 – R370 500 - **Base Tax:** R42 678 - **Marginal Tax Rate:** 26% **Calculation:** 1. **Determine the excess income over the lower bracket:** \[ R310{,}000 - R237{,}100 = R72{,}900 \] 2. **Calculate the tax on the excess income:** \[ 26\% \times R72{,}900 = 0.26 \times 72{,}900 = R18{,}954 \] 3. **Total Tax Payable:** \[ R42{,}678 + R18{,}954 = R61{,}632 \] **Answer:** **R61 632** --- **c) Salary: R600 000** - **Tax Bracket:** R512 801 – R673 000 - **Base Tax:** R121 475 - **Marginal Tax Rate:** 36% **Calculation:** 1. **Determine the excess income over the lower bracket:** \[ R600{,}000 - R512{,}800 = R87{,}200 \] 2. **Calculate the tax on the excess income:** \[ 36\% \times R87{,}200 = 0.36 \times 87{,}200 = R31{,}392 \] 3. **Total Tax Payable:** \[ R121{,}475 + R31{,}392 = R152{,}867 \] **Answer:** **R152 867** --- ### **2. Bongani's Income Tax Calculation** **Given:** - **Age:** 26 years - **Annual Salary:** R230 000 **a) Determine the Tax Payable According to the Tax Table** - **Tax Bracket:** Up to R237 100 - **Tax Rate:** 18% **Calculation:** \[ \text{Tax Payable} = 18\% \times R230{,}000 = 0.18 \times 230{,}000 = R41{,}400 \] **Answer:** **R41 400** --- **b) Determine the Tax Rebate to Be Deducted** - **Standard Tax Rebate for Individuals Under 65:** R16 425 **Answer:** **R16 425** --- **c) Determine the Amount of Tax Bongani Has to Pay** **Calculation:** \[ \text{Net Tax Payable} = \text{Tax Payable} - \text{Tax Rebate} = R41{,}400 - R16{,}425 = R24{,}975 \] **Answer:** **R24 975** --- ### **Summary of Results** 1. **Tax Payable:** - a) R90 000 → **R16 200** - b) R310 000 → **R61 632** - c) R600 000 → **R152 867** 2. **Bongani's Tax:** - a) Tax Payable: **R41 400** - b) Tax Rebate: **R16 425** - c) **Net Tax to Pay:** **R24 975** --- **Note:** These calculations are based on the South African Income Tax Tables for the 2023 tax year. Tax laws and rates are subject to change, so it's always advisable to consult the latest tax guidelines or a professional tax advisor for the most accurate information.