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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 below shows t... 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
5.1.1 State the total number of rebates Malcolm qualifies for.
Answer
Malcolm is 65 years old; hence, he qualifies for the age rebate as specified in the tax tables. Additionally, since he does not belong to a medical aid, he qualifies for one rebate only.
Thus, the total number of rebates Malcolm qualifies for is 1.
Step 2
5.1.2 Calculate Malcolm's monthly tax payable.
Answer
To determine Malcolm's monthly tax payable, we follow these steps:
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Calculate the taxable tax before rebates. Using the tax brackets:
- For an annual taxable income of R981 500, the tax can be calculated as follows:
- Tax on first R857 900: R251 258 + 41% of (R981 500 - R857 900)
- Tax = R251 258 + 0.41 * R123 600 = R251 258 + R50 676 = R301 934.
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Apply the rebate for age: R301 934 - R9 444 (rebate for persons older than 65) = R275 255.
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Finally, calculate the monthly tax payable by dividing by 12:
Hence, Malcolm's monthly tax payable is approximately R22 104.58.