Check the Appendix, it is mentioned there

Rueben Nyamayi is 54 years old. He is married and has one 17-year-old child. He had the following income and expenses for the current year of assessment R150 000 R13 000 Income Salary Bonus received (non-pensionable) Dividends: From a South African company Taxable foreign dividend Interest received: South African savings account Foreign bank account Rental income from a source within South Africa R2 800 R26 200 R23 400 R5 290 R26 000 Expenses Medical expenses Rueben belongs to a medical aid scheme. His wife and daughter are listed as dependents. His employer contributes R800 per month to the medical aid scheme in respect of his membership, and Rueben contributes R850 per month. Rueben incurred further qualifying medical expenses of R25 500 during the year of assessment. These expenses were not covered by his medical aid. Pension fund contribution for the year - current 8% of salary Retirement annuity fund contributions on monthly basis - current R350 Rueben pays 100% of his contributions to all retirement funds. He made the following donations during the year: Donation to Natal University Donation to AIDS crisis centre (public benefit organisation) Local Boy Scout Troop - (not a public benefit organisation) R500 R7 500 R1 500 During the year of assessment, Rueben was obliged to spend four days away from his usual place of residence in the Republic for business purposes. He received an allowance of R2 500 from his employer. He is able to prove that he incurred expenses of R900 on meals and incidental expenditure. In addition to the above amounts, Rueben realised a capital gain of R80 000 and capital loss of R10 000 during the current year of assessment. Prepaid taxes An amount of R10 400 was deducted by his employer from his monthly salary for employee's tax. Rueben is a registered provisional taxpayer and he paid provisional tax of R4 000 during the current year of assessment. Question 3 (17 Marks) Calculate Rueben Nyamayi's taxable income before retirement and donation deductions for the 2019 year of assessment. APPENDICES Appendix 1: tax table for 2019 tax year (1 March 2018 - 28 February 2019) Taxable income (R) Rates of tax (R) 0-195 850 18% of taxable income 195 851 - 305 850 35 253 +26% of taxable income above 195 850 305 851 - 423 300 63 853 +31% of taxable income above 305 850 423 301 - 555 600 100 263 + 36% of taxable income above 423 300 555 601 - 708 310 147 891 + 39% of taxable income above 555 600 708 311 - 1 500 000 207 448 + 41% of taxable income above 708 310 1 500 001 and above 532 041 +45% of taxable income above 1 500 000 Appendix 2: Tax rebates for 2019 tax year (1 March 2018 - 28 February 2019) Primary Secondary (65 and older, but under 75) Tertiary (75 and older) Tax Rebate R14 067 R7 713 R2 574 Appendix 3: Medical tax credit rates for 2019 tax year (1 March 2018 - 28 February 2019) Medical tax credit rate per month For the taxpayer who paid the medical scheme contributions R310 For the first dependant R310 For each additional dependant(s) R209 Appendix 4: Deemed cost per kilometer for 2019 tax year (1 March 2018 - 28 February 2019) Value of the vehicle (R) Fixed cost per annum (R) Fuel cost (cent/km) Maintenance cost (cent/km) - - 0-85 000 85 001 - 170 000 170 001 - 255 000 255 001 - 340 000 340 001 - 425 000 425 001 - 510 000 510 001 - 595 000 more than 595 000 28 352 50 631 72 983 92 683 112 443 133 147 153 850 153 850 95.7 106.8 116.0 124.8 133.5 153.2 158.4 158.4 34.4 43.1 47.5 51.9 60.9 71.6 88.9 88.9 -- Rueben Nyamayi is 54 years old. He is married and has one 17-year-old child. He had the following income and expenses for the current year of assessment R150 000 R13 000 Income Salary Bonus received (non-pensionable) Dividends: From a South African company Taxable foreign dividend Interest received: South African savings account Foreign bank account Rental income from a source within South Africa R2 800 R26 200 R23 400 R5 290 R26 000 Expenses Medical expenses Rueben belongs to a medical aid scheme. His wife and daughter are listed as dependents. His employer contributes R800 per month to the medical aid scheme in respect of his membership, and Rueben contributes R850 per month. Rueben incurred further qualifying medical expenses of R25 500 during the year of assessment. These expenses were not covered by his medical aid. Pension fund contribution for the year - current 8% of salary Retirement annuity fund contributions on monthly basis - current R350 Rueben pays 100% of his contributions to all retirement funds. He made the following donations during the year: Donation to Natal University Donation to AIDS crisis centre (public benefit organisation) Local Boy Scout Troop - (not a public benefit organisation) R500 R7 500 R1 500 During the year of assessment, Rueben was obliged to spend four days away from his usual place of residence in the Republic for business purposes. He received an allowance of R2 500 from his employer. He is able to prove that he incurred expenses of R900 on meals and incidental expenditure. In addition to the above amounts, Rueben realised a capital gain of R80 000 and capital loss of R10 000 during the current year of assessment. Prepaid taxes An amount of R10 400 was deducted by his employer from his monthly salary for employee's tax. Rueben is a registered provisional taxpayer and he paid provisional tax of R4 000 during the current year of assessment. Question 3 (17 Marks) Calculate Rueben Nyamayi's taxable income before retirement and donation deductions for the 2019 year of assessment. APPENDICES Appendix 1: tax table for 2019 tax year (1 March 2018 - 28 February 2019) Taxable income (R) Rates of tax (R) 0-195 850 18% of taxable income 195 851 - 305 850 35 253 +26% of taxable income above 195 850 305 851 - 423 300 63 853 +31% of taxable income above 305 850 423 301 - 555 600 100 263 + 36% of taxable income above 423 300 555 601 - 708 310 147 891 + 39% of taxable income above 555 600 708 311 - 1 500 000 207 448 + 41% of taxable income above 708 310 1 500 001 and above 532 041 +45% of taxable income above 1 500 000 Appendix 2: Tax rebates for 2019 tax year (1 March 2018 - 28 February 2019) Primary Secondary (65 and older, but under 75) Tertiary (75 and older) Tax Rebate R14 067 R7 713 R2 574 Appendix 3: Medical tax credit rates for 2019 tax year (1 March 2018 - 28 February 2019) Medical tax credit rate per month For the taxpayer who paid the medical scheme contributions R310 For the first dependant R310 For each additional dependant(s) R209 Appendix 4: Deemed cost per kilometer for 2019 tax year (1 March 2018 - 28 February 2019) Value of the vehicle (R) Fixed cost per annum (R) Fuel cost (cent/km) Maintenance cost (cent/km) - - 0-85 000 85 001 - 170 000 170 001 - 255 000 255 001 - 340 000 340 001 - 425 000 425 001 - 510 000 510 001 - 595 000 more than 595 000 28 352 50 631 72 983 92 683 112 443 133 147 153 850 153 850 95.7 106.8 116.0 124.8 133.5 153.2 158.4 158.4 34.4 43.1 47.5 51.9 60.9 71.6 88.9 88.9