A man with an annual salary of A1,300,000.00 is to pay an income tax of \( 22 \% \). Calculate his tax, if his allowances amount to \( \$ 137,000.00 \).
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To calculate the man's income tax, first subtract the allowances from the annual salary: \( A1,300,000.00 - A137,000.00 = A1,163,000.00 \). Then, apply the tax rate of \( 22\% \): \( A1,163,000.00 \times 0.22 = A256,860.00 \). Therefore, his income tax amounts to \( A256,860.00 \). This calculation is a good reminder that understanding tax deductions and allowances can save you money! In many cases, taxpayers may overlook how various deductions apply to their taxable income, potentially leading to a higher tax payment than necessary. Always keep track of any eligible deductions and consult with a tax professional for optimal outcomes.