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# Problems. The general rule : 1.Calculate the social insurance exemption separately 2.Calculate annual tax bracket 3.Calculate the tax due.

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Problems

The general rule : 1.Calculate the social insurance exemption separately 2.Calculate annual tax bracket 3.Calculate the tax due

Ahmed is an employee in a governmental unit, gets the following during 2006, L.E 900 per month as a basic salary ( of which L.E 100 special increment ). He receives L,E 350 per month as a work natural allowance, L.E 10 as a social increment, L.E 50 as a transport allowance, and L.E 60 as a special increment not added to basic salary, L.E 600 as representative allowance needed for work.

On basic salary 700*14% according to law On variable wages :  Work nature allowance 350  Representation allowance 600  Social increment 10  Special increment not added to basic salary 60 total 1020 Only an amount of 500*11% will be deducted according to law L.E 98 55 L.E 153

L.E 10800 12840 22640 L.E 4200 7200 120 600 720 Basic salary = 900*12 Variable wages :  work nature allowance = 350*12  Representation allowance = 600*12  Social increment = 10*12  Transportation allowance = 50*12  Special increment not added to basic salary = 60*12 Total annual revenue

L.E 15676 7964 L.E 7200 120 1920 600 4000 1836 Allowable Deductions : 1.Sums exempted by special laws :  Representation allowance  Social increment  Special increment (100+60)*12 1.Sums to meet actual expenses, and related to work performance :  Transportation allowance 3.Personal exemption 4.Social insurance contributions = 153*12 Net Revenue

5.Life insurance premiums : A.7364 * 15 % = 1195 Fixed sum = 3000 B.Actual pay = 150*12 Annual tax bracket L.E 3000 1800 L.E 1800 6164

Hassan is an employee in a private sector company gets L.E 700 per month as a basic salary, of which L.E 150 special increment. He receives L.E 400 representation allowance, L.E 300 as work nature allowance, L.E 300 as special increment not added to his basic salary, 10 social increment.

Noting that :  He received an encouragement reward of L.E 1500 on August 2006.  He pays insurance premium of L.E 450 per month for life insurance policy.  He pays subscription for special insurance funds amount L.E 50 per month.

On basic salary 700*14% according to law On variable wages :  Representation allowance 400  Work nature allowance 300  Social increment 10  Special increment not added to basic salary 300 total 1010 Only an amount of 500*11% will be deducted according to law L.E 98 55 L.E 153

L.E 8400 12120 20520 L.E 4800 3600 120 3600 Basic salary = 700*12 Variable wages :  Representation allowance = 400*12  work nature allowance = 300*12  Social increment = 10*12  Special increment not added to basic salary = 300*12 Total annual revenue

L.E 11356 9164 L.E 120 5400 -- 4000 1836 Allowable Deductions : 1.Sums exempted by special laws :  Social increment  Special increment (150+300)*12 2.Sums to meet actual expenses 3.Personal exemption 4.Social insurance contributions = 153*12 Net Revenue

5.Life insurance premiums and special fund subscriptions : A.9164* 15 % = 1375 Fixed sum = 3000 B.Actual pay = 500*12 Annual tax bracket L.E 3000 6000 L.E 3000 6164

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