Question 6 [10] Calculate the tax payable by each of the following taxpayers. My Services Ltd The Company is classified as a personal service provider for income tax purposes. The company has a taxable income of R200 000 for the 2013 year of assessment. Personal service are taxed at a flat rate of 33% of taxable income. Small Business Ltd The company is classified as a small business corporation for income tax purposes. The company has taxable income of R 150 000 for the 2013 year of assessment. All small business corporations are taxed on the following sliding scale: no tax is payable on the first Page 7 of 7 R54 200 of taxable income, 10% income tax is payable on taxable income between R54 200 and R300 000, and 28% income tax is payable on taxable income above R300 000. Micro-business Ltd The company is classified as a micro-business for income tax purposes and it elected to be taxed on turnover. The company has a turnover of R250 000 for the 2013 year of assessment. Micro-business Ltd elected to be taxed on turnover, i. e. to be taxed on the following sliding scale: no tax is payable on the first R100 000 of turnover, 1% income tax is payable on turnover between R100 000 and R300 000, 3% income tax is payable on turnover between R300 000 and R500 000, 5% income tax is payable on turnover between R500 000 and R750 000, and 7% on turnover above R 750 000. YOU ARE REQUIRED to calculate the normal tax payable for the 2013 year of assessment for each of the above mentioned taxpayers.
Question 6 [10] Calculate the tax payable by each of the following taxpayers. My Services Ltd The Company is classified as a personal service provider for income tax purposes. The company has a taxable income of R200 000 for the 2013 year of assessment. Personal service are taxed at a flat rate of 33% of taxable income. Small Business Ltd The company is classified as a small business corporation for income tax purposes. The company has taxable income of R 150 000 for the 2013 year of assessment. All small business corporations are taxed on the following sliding scale: no tax is payable on the first Page 7 of 7 R54 200 of taxable income, 10% income tax is payable on taxable income between R54 200 and R300 000, and 28% income tax is payable on taxable income above R300 000. Micro-business Ltd The company is classified as a micro-business for income tax purposes and it elected to be taxed on turnover. The company has a turnover of R250 000 for the 2013 year of assessment. Micro-business Ltd elected to be taxed on turnover, i. e. to be taxed on the following sliding scale: no tax is payable on the first R100 000 of turnover, 1% income tax is payable on turnover between R100 000 and R300 000, 3% income tax is payable on turnover between R300 000 and R500 000, 5% income tax is payable on turnover between R500 000 and R750 000, and 7% on turnover above R 750 000. YOU ARE REQUIRED to calculate the normal tax payable for the 2013 year of assessment for each of the above mentioned taxpayers.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
not use ai please
![Question 6 [10]
Calculate the tax payable by each of the following taxpayers.
My Services Ltd
The Company is classified as a personal service provider for income tax purposes. The company has a taxable income of
R200 000 for the 2013 year of assessment. Personal service are taxed at a flat rate of 33% of taxable income.
Small Business Ltd
The company is classified as a small business corporation for income tax purposes. The company has taxable income of R
150 000 for the 2013 year of assessment. All small business corporations are taxed on the following sliding scale: no tax is
payable on the first
Page 7 of 7
R54 200 of taxable income, 10% income tax is payable on taxable income between R54 200 and R300 000, and 28%
income tax is payable on taxable income above R300 000.
Micro-business Ltd
The company is classified as a micro-business for income tax purposes and it elected to be taxed on turnover. The
company has a turnover of R250 000 for the 2013 year of assessment. Micro-business Ltd elected to be taxed on
turnover, i. e. to be taxed on the following sliding scale: no tax is payable on the first R100 000 of turnover, 1% income
tax is payable on turnover between R100 000 and R300 000, 3% income tax is payable on turnover between R300 000
and R500 000, 5% income tax is payable on turnover between R500 000 and R750 000, and 7% on turnover above R
750 000.
YOU ARE REQUIRED to calculate the normal tax payable for the 2013 year of assessment for each of the above
mentioned taxpayers.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fcdd6d950-92bb-453e-a12d-0cfaf8443d96%2F5cb12da4-6a69-4d13-a9c4-bb9310dc9774%2F521i45v_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Question 6 [10]
Calculate the tax payable by each of the following taxpayers.
My Services Ltd
The Company is classified as a personal service provider for income tax purposes. The company has a taxable income of
R200 000 for the 2013 year of assessment. Personal service are taxed at a flat rate of 33% of taxable income.
Small Business Ltd
The company is classified as a small business corporation for income tax purposes. The company has taxable income of R
150 000 for the 2013 year of assessment. All small business corporations are taxed on the following sliding scale: no tax is
payable on the first
Page 7 of 7
R54 200 of taxable income, 10% income tax is payable on taxable income between R54 200 and R300 000, and 28%
income tax is payable on taxable income above R300 000.
Micro-business Ltd
The company is classified as a micro-business for income tax purposes and it elected to be taxed on turnover. The
company has a turnover of R250 000 for the 2013 year of assessment. Micro-business Ltd elected to be taxed on
turnover, i. e. to be taxed on the following sliding scale: no tax is payable on the first R100 000 of turnover, 1% income
tax is payable on turnover between R100 000 and R300 000, 3% income tax is payable on turnover between R300 000
and R500 000, 5% income tax is payable on turnover between R500 000 and R750 000, and 7% on turnover above R
750 000.
YOU ARE REQUIRED to calculate the normal tax payable for the 2013 year of assessment for each of the above
mentioned taxpayers.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps
Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education