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

Ask by Whittaker Wright. in South Africa
Jan 23,2025

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**Income Tax Calculations** 1. **Tax Payable for Salaries:** - **R90 000:** R16 200 - **R310 000:** R61 632 - **R600 000:** R152 867 2. **Bongani's Tax:** - **Tax Payable:** R41 400 - **Tax Rebate:** R16 425 - **Net Tax to Pay:** R24 975

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To calculate the tax payable for salaries of R90,000, R310,000, and R600,000, you would typically look up the applicable rates in the Income Tax Table for your specific jurisdiction. For example, if the tax rate for R90,000 is 18% on the first R80,000 and 26% on the excess, the calculation would be straightforward. Similarly, you would apply the appropriate tax brackets for R310,000 and R600,000 to determine the total tax for each. In Bongani's case, for R230,000, you would again use the tax table to assess which bracket his salary falls into. Assuming the rates show an approximate rate of 26% on income above R195,000, you can calculate the base tax due. Now, considering that he's under the age threshold for tax rebates, you would then subtract any rebates he's entitled to from the calculated tax to find out the final amount Bongani has to pay. Don't forget to double-check the latest tax rates, as they can vary from year to year!

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