Marai Marais (aged 40) is a resident of South Africa. He is employed as a plant supervisor at

Eugin (Pty) Ltd (a South African resident company that manufactures paper). Marai is

married out of community of property and has 2 children. He has the following receipts and

accruals for the 2023 year of assessment:

Description Note Amount (R)

Salary received from Eugin (Pty) Ltd 480 000

Uniform allowance from Eugin (Pty) Ltd 1 3 500

Bursary from Eugin (Pty) Ltd 2 65 000

Local interest 3 25 250

Gross local dividends 4 23 750

Rental income 5 108 000

Proceeds from sale of shares 6 164 500

Proceeds from sale of personal motor vehicle 7 125 000

Proceeds from sale of primary residence 8 2 500 000

Notes:

1. While on duty at the manufacturing plant of Eugin (Pty) Ltd, Marai is required to wear

a uniform that meets specific safety standards. This uniform, a heavy-duty, chemical

safe blue overall, features the company name, employee name, and designation.

2. Marai's son is pursuing an engineering degree (NQF level 7) at the University of

Cape Town. Eugin (Pty) Ltd provided a bursary for tuition fees. Marai's prior year

remuneration was R400,000.

3. Marai earns local interest from his current and fixed deposit accounts at South

African banks.

4. Marai receives dividends from his investments in South African companies listed on

the Johannesburg Stock Exchange.

5. Marai rents out an apartment in Johannesburg, earning R9,000 per month. Expenses

for the 2023 year of assessment include water and rates (R14,400) and repairs for a

water pipe (R1,350).

6. Marai sold part of his investment share portfolio for R164,500 on 1 January 2023

(initially purchased for R100,000 on 1 May 2017).

7. Marai sold his personal Kia Sportage for R125,000 on 29 January 2023. The car,

primarily used for private purposes, was originally bought for R195,000 on 15 June

2019.

8. Marai's primary residence, originally purchased for R1,800,000 on 1 June 2012, was

sold for R2,500,000 on 20 February 2023. No improvements were made to the

property.

Required:

Calculate Marai Marais's taxable income for the 2023 year of assessment. (27 marks)