Taxable income (R) 1-216 200 216 201-337 800 337 801-467 500 2021/2022 TAX YEAR Rates of tax (R) 18% of taxable income 38 916 +26% of taxable income above 216 200 70 532 + 31% of taxable income above 337 800 110 739 + 36% of taxable income above 467 500 467 501-613 600 613 601-782 200 163 335 + 39% of taxable income above 613 600 782 201-1656 600 229 089 +41% of taxable income above 782 200 4 1 656 601 and above 587 593 + 45% of taxable income above 1 656 600 TAX REBATES • A special relief/discount given to taxpayers. It is subtracted after the income tax has been calculated. • Every person qualifies for primary rebate. Older people are granted additional rebate i.e. If you are older than 65 years of age you will receive Primary and secondary rebate; If you are over 75 years you will receive primary, secondary, and tertiary rebate. Tax rebate type Primary (age below 65) Secondary (65 to 74) Tertiary (75 and older) 2021 R14 958 2022 R15 714 R8 199 R8 613 R2 736 R2 871 • TAX THRESHOLD Tax threshold specifies the minimum income that a person can earn before being liable to pay tax. If taxable income is higher than the tax threshold, an employee must pay tax on it. If taxable income is lower than the tax threshold, an employee will not pay tax. Age Tax threshold 2022 2021 Under 65 R87 300 R83 100 65 to 74 R135 150 R128 650 75 and older R151 100 R143 850 ACTIVITY 2 Question 2 Wendy is a 67-year-old, married with two children. She contributes to a medical aid scheme for her family. Her annual taxable income is R723 458 for the 2022 tax year. Use the 2021/22 Tax rate tables to answer the questions that follow: 2.1. What is the tax bracket applicable to Wendy's taxable income? 2.2. Define the term gross income. 2.3. How much tax rebate does Wendy qualify for? 2.4. Calculate Wendy's monthly tax payable. 2.5. If Wendy's friend is 64 years old and is earning an annual taxable income of R123 751,00 in the 2022 tax year, how much tax will the friend have to pay? NON-TAXABLE DEDUCTIONS The amounts an employer deducts from the employee's gross income before tax is calculated. • Examples: Pension fund, Retirement annuity fund, UIF and Donations. Taxable Income = Gross Income - Non-taxable deductions Practice Example Peter is 49 years old and works for a Cell-phone company that pays him a gross income of R33 255,00 per month. He contributes R2 170 per month towards a pension fund. 6 Peter is also very passionate about animals to an extend that he donates 5% of his monthly salary to a registered animal shelter in his neighbourhood. Use the information above and the 2022 tax rate tables to help you answer the questions below: a) Determine Peter's monthly taxable income. b) What will Peter's annual taxable income be? c) Calculate Peter's monthly tax payable. ACTIVITY 3 1.1. Thabiso is a 67-year-old plumber who earned an annual taxable income of R83 000 in 2021. Thabiso stated that he is not liable to pay tax, show with calculations whether his claim is valid or not. 1.2. What information is needed to determine a person's rebate? 1.3. Mrs Zulu, who is 58 years old, earns a monthly income of R60 000. Each month she contributes the following from her monthly income: Medical aid for herself, her husband and two children • 7,5% of her basic income is contributed to a pension fund. • 1% of her basic income is contributed to the UIF (max. R148,72).

Taxable income (R) 1-216 200 216 201-337 800 337 801-467 500 2021/2022 TAX YEAR Rates of tax (R) 18% of taxable income 38 916 +26% of taxable income above 216 200 70 532 + 31% of taxable income above 337 800 110 739 + 36% of taxable income above 467 500 467 501-613 600 613 601-782 200 163 335 + 39% of taxable income above 613 600 782 201-1656 600 229 089 +41% of taxable income above 782 200 4 1 656 601 and above 587 593 + 45% of taxable income above 1 656 600 TAX REBATES • A special relief/discount given to taxpayers. It is subtracted after the income tax has been calculated. • Every person qualifies for primary rebate. Older people are granted additional rebate i.e. If you are older than 65 years of age you will receive Primary and secondary rebate; If you are over 75 years you will receive primary, secondary, and tertiary rebate. Tax rebate type Primary (age below 65) Secondary (65 to 74) Tertiary (75 and older) 2021 R14 958 2022 R15 714 R8 199 R8 613 R2 736 R2 871 • TAX THRESHOLD Tax threshold specifies the minimum income that a person can earn before being liable to pay tax. If taxable income is higher than the tax threshold, an employee must pay tax on it. If taxable income is lower than the tax threshold, an employee will not pay tax. Age Tax threshold 2022 2021 Under 65 R87 300 R83 100 65 to 74 R135 150 R128 650 75 and older R151 100 R143 850 ACTIVITY 2 Question 2 Wendy is a 67-year-old, married with two children. She contributes to a medical aid scheme for her family. Her annual taxable income is R723 458 for the 2022 tax year. Use the 2021/22 Tax rate tables to answer the questions that follow: 2.1. What is the tax bracket applicable to Wendy's taxable income? 2.2. Define the term gross income. 2.3. How much tax rebate does Wendy qualify for? 2.4. Calculate Wendy's monthly tax payable. 2.5. If Wendy's friend is 64 years old and is earning an annual taxable income of R123 751,00 in the 2022 tax year, how much tax will the friend have to pay? NON-TAXABLE DEDUCTIONS The amounts an employer deducts from the employee's gross income before tax is calculated. • Examples: Pension fund, Retirement annuity fund, UIF and Donations. Taxable Income = Gross Income - Non-taxable deductions Practice Example Peter is 49 years old and works for a Cell-phone company that pays him a gross income of R33 255,00 per month. He contributes R2 170 per month towards a pension fund. 6 Peter is also very passionate about animals to an extend that he donates 5% of his monthly salary to a registered animal shelter in his neighbourhood. Use the information above and the 2022 tax rate tables to help you answer the questions below: a) Determine Peter's monthly taxable income. b) What will Peter's annual taxable income be? c) Calculate Peter's monthly tax payable. ACTIVITY 3 1.1. Thabiso is a 67-year-old plumber who earned an annual taxable income of R83 000 in 2021. Thabiso stated that he is not liable to pay tax, show with calculations whether his claim is valid or not. 1.2. What information is needed to determine a person's rebate? 1.3. Mrs Zulu, who is 58 years old, earns a monthly income of R60 000. Each month she contributes the following from her monthly income: Medical aid for herself, her husband and two children • 7,5% of her basic income is contributed to a pension fund. • 1% of her basic income is contributed to the UIF (max. R148,72).

Intermediate Algebra

19th Edition

ISBN:9780998625720

Author:Lynn Marecek

Publisher:Lynn Marecek

Chapter12: Sequences, Series And Binomial Theorem

Section12.3: Geometric Sequences And Series

Problem 12.58TI: What is the total effect on the economy of a government tax rebate of $500 to each household in...

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