Taxable income for any legal person at 15% in the country

Al-Wafa Commercial Company, a public shareholding company, presented the profit and loss account in NIS for the year ended 31/12/2018 which were as follows:

Al-Wafaa Commercial Company List of profits and losses for the year 2018

3,000,000 total income

Less: expenses 170,000

rental expenses 360,000

salaries 290,000

incorporation expenses 90,000

depreciation 65,000

R&D expenses 34,800

hospitality expenses 85,000

end of service gratuity 35,200

training expenses 510,000

bad debts 480,000

provision for doubtful debts 2,120,000

total expenses 880,000

net income When making the estimate, the estimator shows the following:

1. The amount of NIS 60,000,000 in which deductions are not met.

2. The founding expenses amounted to NIS 1,300,000.

3. Among the consumption is a machine whose cost is 180,000 NIS, which is 20% consumed, while the taxable rate on this machine is 15%.

4. The end of service gratuity was paid to a company employee who worked for the company for a period of 14 years, and the last salary was NIS 200,5.

5. Among the bad debts, the amount of NIS 50,000,000 does not meet the conditions for accepting the debt execution.

6. Staff training items, research and development expenses, hospitality expenses, end-of-service gratuity and doubtful debts allowance were dealt with according to the law.

Required: Calculation of the income tax owed by the company for the year 2018

tax rate if the income nis1-75.000 tax 5%

if the income nis 75.001 - 150.000 tax 10%

if the income nis 150.001 or more tax 15%