Illustration

Garth Mapushi, a Chartered Accountant, worked as Chief Accountant for Fulwe Ltd$.$ The following were his income from employment in the tax year $2023.$

Basic Annual Salary

K$720,000$

Housing Allowance

$20\%$ of basic salary

Transport Allowance

$10\%$ of basic salary

Education Allowance

K$500/$ child per term

On ${30}^{th}$ September, $2023,$ Mapushi resigned from employment to start his own accounting firm specializing in taxation.

The following were his other income in tax year $2023.$

Consultancy fees K$724000($net$)$

Royalties $($authored ZICA module $3\mathrm{.}4)$

K$24000($net$)$

Bank interest

K$6000($net$)$

Dividend from Zambia Sugar

K$18000($gross$)$

Annuity

K$6000$

Business profit from business he runs as sole trader K$24000$

NB: $,$ Mapushi has three school going children

Mapushi received the annuity from Madison Insurance. He had initially deposited K$45000$ and will be receiving the annuity yearly for twelve $(12)$ years.

The following were some of the payments he made in the tax year $2023.$

PAYE

K$120000$

NAPSA $5\%$ of basic pay$-$limit K$1\frac{342}{?}$ month

Provisional tax K$16000$

Professional subscription to ZICA K$4720$

Donation to Mount Makulu

K$17500$ equipment worth

Donation to Cheshire Homes cash K$12000$

Required:

Compute for Mr$.$ Mapushi his income tax payable for tax year $2023.$