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Malcolm, a 65-year-old consultant, earns an annual taxable income of R981 500 for the 2023/2024 tax year - NSC Mathematical Literacy - Question 5 - 2024 - Paper 1
Question 5
Malcolm, a 65-year-old consultant, earns an annual taxable income of R981 500 for the 2023/2024 tax year. He does not belong to a medical aid. TABLE 8: 2023/2024 TA... show full transcript
Worked Solution & Example Answer:Malcolm, a 65-year-old consultant, earns an annual taxable income of R981 500 for the 2023/2024 tax year - NSC Mathematical Literacy - Question 5 - 2024 - Paper 1
Step 1
Step 2
5.1.2 Calculate Malcolm's monthly tax payable.
Answer
To determine Malcolm's monthly tax payable, we first calculate the tax before rebates. Since his annual taxable income is R981 500, we fall into the tax bracket for R857 901 - 1 817 000, which suggests the following calculation:
Tax before rebates:
egin{align*} ext{Tax} & = R251 258 + 41\% ext{ of } (R981 500 - R857 900) \ & = R251 258 + 0.41(R123 600)\ & = R251 258 + R50 556\ & = R301 814 ext{Tax after rebates:} \text{Total rebates for Malcolm} = R32 478 \ ext{Tax after rebates} = R301 814 - R32 478 = R269 336 \ \text{Monthly Tax Payable} = \frac{R269 336}{12} \ = R22 444.67 ext{Therefore, Malcolm's monthly tax payable is approximately R22 444.67.}