Question
Mr Muuka was in employment in ABC Limited whilst renting out furnished apartments. His last payment, in December 2020, he received the following payment (excluding
Mr Muuka was in employment in ABC Limited whilst renting out furnished apartments. His last payment, in December 2020, he received the following payment (excluding gratuity). (Zambia Taxes)
Salary K120,000
Bonus K112,000
Allowances K101,000
ABC Limited paid PAYE amounting to K35,000 and NAPSA K280.
Mr Muuka received income from his Investment in property amounting to K225,000 (net). He had occupied the apartment in January 2020 before being accommodated by the company.
The following were expenses incurred in 2020:
K
Cleaning 12,000
Debt Collection costs 17,500
Advertising 10,000
Repairs and Maintenance 12,500
Water and electricity 6,000
Interest on Mortgage to purchase the property 3,500
Accountancy fees 15,000
Insurance (Note 1) 48,000
NOTE 1, The Insurance of K48, 000 was paid on 1 June 2020. The insurance paid on 1 June, 2019 was K36,000
Required:
Calculate the tax payable by Mr Muuka for the tax year 2020.
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