Question
Chantel Samuel is a 24-year-old female who is unmarried. She currently resides in Johannesburg, South Africa and began working on the 1st of August 2018.During
Chantel Samuel is a 24-year-old female who is unmarried. She currently resides in Johannesburg, South Africa and began working on the 1st of August 2018.During the current year she had earned a salary of R230 000 and interest on her fixed deposit of R29 800. She belongs to a medical aid fund to which she contributed R5 000 for the full current year of assessment, her employer also contributed R5 000 for the period during which she was employed. Chantel also made retirement fund contributions of R3 500 for the current year of assessment. A few years ago, she had inherited a beautiful house, situated in Cape Town, from her grandfather which she rents out and during the year she received a rental amount of R240 000 for the year of assessment and she had incurred maintenance expenses of R210 000 which are tax deductible. Chantel had incurred medical expenses of R1 600 for the year and this was not covered by her medical aid. Her employer had made a deduction of R27 829 for employees tax and Chantel made a provisional payment of R18 200 for the 2020 year of assessment. You are required to calculate Chantels net tax liability for the current year of assessment.
My answer below : I need someone that understand south africa tax to see if i worked out this correctly if not help me with step by step solution?
To calculate Chantel's net tax liability for the current year of assessment: | |
Salary | 230,000 |
Interest income | 29,800 |
Rental income | 240,000 |
=Gross income | 499,800 |
Less deductions: | |
Maintenance expense | - 210,000 |
Retirement fund contributio | - 3,500 |
=Taxable income | 286,300 |
R286 300-216 200 x 26%= | 18,226 |
=Tax on taxable income | 57,142 |
R38 916 + R18,226 | |
Less: | |
Primary rebates | 15,714 |
Medical Scheme Fees Credit | 3,828 |
Employee tax deducted | 27,829 |
Provisional tax paid | 18,200 |
=Net tax liability | NIL |
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