Mr Lou Jo, aged 56, earned a taxable income of R400 000 during the 2020 year of assessment. She did however not include interest received from a local bank of R34 500 in her gross income. What is his normal tax payable? Please use the tax table below. Round off to the nearest Rand. Ignore any rebates for this question.
VALUES 2020
| Tax Thresholds(point at which normal tax becomes payable) | ||
| Taxable income (Rand) | ||
| 2020 | 2019 | |
| Persons under 65 | 79 000 | 78 150 |
| Persons 65 and under 75 | 122 300 | 121 000 |
| Persons 75 and above | 136 750 | 135 300 |
| Rates of normal tax | |
| Natural persons and special trusts – 2020 | |
| Taxable income | Rates of tax |
| R0 – R195 850 | 18% of taxable income |
| R195 851 – R305 850 | R35 253 + 26% of taxable income exceeding R195 850 |
| R305 851 – R423 300 | R63 853 + 31% of taxable income exceeding R305 850 |
| R423 301 – R555 600 | R100 263 + 36% of taxable income exceeding R423 300 |
| R555 601 – R708 310 | R147 891 + 39% of taxable income exceeding R555 600 |
| R708 311 – R1 500 000 | R207 448 + 41% of taxable income exceeding R708 310 |
| R1 500 001 and above | R532 041 + 45% of taxable income exceeding R1 500 000 |
a.
R96 350b.
R63 853c.
R32 504d.
None of the above
1 Answer