Question
Tax Tables Use the following tax tables to answer your questions, where necessary. Rates of tax from 2016/2017 tax years Resident companies On taxable income
Tax Tables
Use the following tax tables to answer your questions, where necessary.
Rates of tax from 2016/2017 tax years
Resident companies On taxable income
Standard rate 22%
Manufacturing company rate 15%
Non-resident companies
Standard rate 30%
Resident individuals
P0 P36,000 Nil
P36,001 P72,000 Nil + 5% of excess over 36 000
P72,001 P108,000 P1,800 + 125% of excess over 72 000
P108,001 P144,000 P6,300 + 1875% of excess over 108 000
Over P144,000 P13,050 + 25% of excess over 144 000
Capital gains individuals
P0 P18,000 Nil
P18,001 P72,000 P0 + 5% of excess over 18 000
P72,000 P108,000 P2,700 + 12.5% of excess over 72 000
P108,000 P144,000 P7,200 + 18.75% of excess over 108 000
Over P144,000 P13,950 + 25% of excess over 120 000
Capital gains companies
Net aggregate gains are taxable at the company rates of tax.
Tax on Foreign dividend 15%
Basis of valuation of benefits
Individuals vehicle benefit
Vehicle cost Employee benefit Fuel cost adjustment
P1 - P50 000 P2 500 P1 000
P50 001 - P100 000 P5 000 P2 000
P100 001 - P150 000 P7 500 P3 000
P150 000 - P200 000 P10 000 P4 000
Benefit on the excess of P200 000 is 15% thereof with a maximum fuel cost adjustment of P5 000.
Individuals housing benefit:
If rated:
10% of the propertys rateable value prorated by occupation and reduced by any contribution made by the employee.
If not rated:
Gross floor area x P250 per sq metre x 8% for a standard building
The benefit is prorated by period of use and reduced by any contribution made by the employee.
Dorah Chibaya is the finance director of Dunlop (Pty) Ltd. Details of her earnings for the year ended 30 June 2017 were:
P
Salary P25 000 pula per month
Commission 280,000
Company car Cost 320,000
Company provided housing Rateable value 925,000
Utilities paid by the company 88,865
School fees paid by the company 63,872
Medical aid paid by the company 44,618
Cell phone allowance 48,000
PAYE withheld 160,000
Other information:
1. Dorah is a member of the companys approved pension scheme to which she contributes 8% of her basic salary and the company contributes 12%
2. Dorah pays P44, 000 towards her company provided house.
3. Dorah was reimbursed P25, 000 for entertainment expenses which she had incurred during the year.
4. During the year Dorah cashed in some of her leave days for P34, 000.
5. In October 2016, the Labour Court awarded Dorah P90, 000 as a result of a pay dispute against the company which commenced in the previous year.
Required:
(i) Calculate Dorah Chibayas taxable income for the year ended 30 June 2017.
Note: Indicate any amounts not taxable or not deductible by the use of zero (0). (12 marks)
(ii) Calculate the tax payable by or refundable to Dorah Chibaya for the tax year ended 30 June 2017. (3 mark)
(15 marks)
defined
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