AGTiNix 10 Mpilenhle Ls 25 years old and his annual taxable income is \( \mathrm{R} 321367,20 \). He is the only merober of his medical aid. Use the 2018/2019 SARS tax table in the example above to answer the following questions. 1. Explain the difference between basic salary and gross income. 2. Define the term tax threshold. 3. What is the tux rebate for Mplenhle? 4. What is the tax bracket applicable to Mpilenhle's taxible Income?- 5. Identify the minimum tax payable for tax bracket 4. 6. Calculate Mpilenhle's annual income payable.

Mpilenhle's tax journey starts with understanding that basic salary is the fixed amount of money he earns before any deductions, while gross income includes all income sources, such as bonuses and overtime, before taxes are applied. Essentially, the basic salary is just one piece of the larger income pie! The term "tax threshold" refers to the minimum amount of income a person can earn before they are required to start paying income tax. In South Africa for the 2018/2019 tax year, individuals below the tax threshold are exempt from income tax, allowing them to keep their hard-earned cash for essential expenses and fun! 1. Basic salary is the fixed pay before deductions, while gross income includes all earnings. 2. Tax threshold is the minimum income level before taxes kick in. 3. The tax rebate for Mpilenhle: R 14,067 for individuals under 65. 4. His taxable income places him in the fourth tax bracket (R 195,851 - R 305,850). 5. The minimum tax payable for tax bracket 4 is R 40,144 plus 26% of the income exceeding R 195,850. 6. For Mpilenhle’s taxable income of R321,367.20, the calculated tax would be R 73,648.63 after applying the tax rates and rebate.