E-Math - Math in Practical Situations - Find the Income tax payable from the chargeable income
a)
i) $16 000
Look at the row "On the first $20 000", the gross income tax payable is $0.
Since $16 000 is below $20 000. (It means that anyone earning $20 000 or less
does not have to pay income tax)
Answer : $0
ii) $38 000
= $30 000 + $8 000
Look at the row "On the first $30 000" , the gross income tax payable is $375.
Look at the next row just below, the rate is 5.75% → $8 000 x 5.75% =$460
Answer : $375+$460 = $835
iii) $55 000
= $40 000 + $15 000
Look at the row "On the first $40 000" , the gross income tax payable is $950.
Look at the next row just below, the rate is 8.75% → $15 000 x 8.75% =$1312.50
Answer : $950+$1312.50= $2 262.50
iv) $100 000
= $80 000 + $20 000
Look at the row "On the first $80 000" , the gross income tax payable is $4 450.
Look at the next row just below, the rate is 14.5% → $20 000 x 14.5% =$2 900
Answer : $4 450+$2 900= $7 350
Additional Math (A-Maths) and Math (E-Math) Tutor in Woodlands, Chua Chu Kang,
Sembawang, Bukit Panjang, Yishun and Johor Bahru.
i) $16 000
Look at the row "On the first $20 000", the gross income tax payable is $0.
Since $16 000 is below $20 000. (It means that anyone earning $20 000 or less
does not have to pay income tax)
Answer : $0
ii) $38 000
= $30 000 + $8 000
Look at the row "On the first $30 000" , the gross income tax payable is $375.
Look at the next row just below, the rate is 5.75% → $8 000 x 5.75% =$460
Answer : $375+$460 = $835
iii) $55 000
= $40 000 + $15 000
Look at the row "On the first $40 000" , the gross income tax payable is $950.
Look at the next row just below, the rate is 8.75% → $15 000 x 8.75% =$1312.50
Answer : $950+$1312.50= $2 262.50
iv) $100 000
= $80 000 + $20 000
Look at the row "On the first $80 000" , the gross income tax payable is $4 450.
Look at the next row just below, the rate is 14.5% → $20 000 x 14.5% =$2 900
Answer : $4 450+$2 900= $7 350
In this post, I will take a different approach to show you how to solve the problem. Instead of explaining the methods and details on how to solve, I will instead give you the workings and solutions and I believe you can figure out on your own.
"Income tax payable" means the actual amount of tax that you have to pay the government
"Chargeable Income" means the total annual income that is use to calculate to the income tax payable.
Additional Math (A-Maths) and Math (E-Math) Tutor in Woodlands, Chua Chu Kang,
Sembawang, Bukit Panjang, Yishun and Johor Bahru.
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