Presentation is loading. Please wait.

Presentation is loading. Please wait.

Look into Article No:14 Tax Rates for Income Taxes.

Published bySarah Kelly Modified over 8 years ago

Similar presentations

Presentation on theme: "Look into Article No:14 Tax Rates for Income Taxes."— Presentation transcript:

1 Look into Article No:14 Tax Rates for Income Taxes

2 Case Studies Case (1): Omar work in private company with monthly salary 2000 NIS. 1- Calculate the tax income if you know that he is married and has 2 sons under 18 years old. 2- Calculate the tax value per month in (NIS). 3- Calculate his monthly salary after income tax. Note: The exchange rate for dollar 4 NIS.

3 Answer: - Annual income = 2000 * 12= 24000 24000/4 = 6000$ 24000/4 = 6000$ - Exemptions: (article 10) Resident = 3000 Resident = 3000 Wife = 500 Wife = 500 Sons =500*2 = 1000 Sons =500*2 = 1000 Total =4500$ Total =4500$ - Taxable income= 6000-4500=1500$ - Income Tax = 1500* 8%= 120$ annually (article 14) - Tax value per month = 120$/ 12 =10$ 10$*4 = 40 NIS - Salary after income tax= 1960 NIS

4 Case (2): Hassan work in private company with monthly salary 3000 NIS. - He lives in a rent home 200$ monthly. - He lives in a rent home 200$ monthly. - He is married and have 5 sons. - He is married and have 5 sons.Required: 1-Calculate the accrued income tax if you know that the exchange rate for dollar 4 NIS. 2- Calculate the tax value per month. 3- Calculate his monthly salary after income tax.

5 Answer: - Annual income = 3000*12/4= 9000$ - Exemptions: - Resident = 3000 - Resident = 3000 - Wife = 500 - Wife = 500 - Sons =500*5=2500 - Sons =500*5=2500 - Rent = 2000 - Rent = 2000 Total of exemptions = 8000 $ Taxable income =1000* 8% = 80$ annually Tax value per month = 80$/ 12 =6.66$ 6.66$*4 = 26.6 NIS Salary after income tax= 2973.4 NIS

6 Case (3): Mr. Marwan work as manager for a company with: - monthly salary 9000 NIS and has, - bonus addition career 1500, - bonus addition high cost of living 750 and, - bonus addition for travel 250. Required: 1. Calculate the income tax if you know that he is married and have 2 sons. One of them study in Palestine university. 1. Calculate the income tax if you know that he is married and have 2 sons. One of them study in Palestine university.Note: - The exchange rate for dollar 5 NIS. - The exchange rate for dollar 5 NIS. - Marwan work in private company so bonus for travel included with income tax. - Marwan work in private company so bonus for travel included with income tax.

7 Answer: Base salary 9000 Bonus addition career 1500 bonus addition high cost of living 750 bonus addition for travel 250 Total salary 11500 *12/5= 27600$ Exemption: Resident 3000 Wife 500 Sons 500= 500*1 Student (university) 2500 Total of exemption = 6500$

8 Taxable income 27600- 6500= 21100$ 10000*8%= 800 6000*12%=720 5100*16%= 816 Annual income tax = 800+720+816=2336 Monthly income tax= 2336/12=194.6$ 194.6*5=973NIS Salary after income tax = 11500-973=10527 NIS

9 Case (4): Mr. Jehad work in the Investment Bank with monthly base salary 309$ and bonus of addition high cost of living amounted 80% of base salary. and bonus addition for cash risk 25.7$ monthly. If you know that his contribution of saving box with 5% of base salary. And social security contribution (pension) 32.02$. Mr. Jehad get 14 salaries yearly (banking system) If you know that his contribution of saving box with 5% of base salary. And social security contribution (pension) 32.02$. Mr. Jehad get 14 salaries yearly (banking system) Required: calculate the income tax in case 1- single. 2- (married + 4) and additional income from part time work 200$ for 6 months annually.

10 Look into Article No:6 & 7

11 Answer: case 1 Base salary 309$ + addition high cost of living 247.2$ (309*80%) + addition for cash risk 25.7$ total monthly salary = 581.9$ total monthly salary = 581.9$ Deduct nontaxable income saving box 15.45$ social security contribution (pension) 32.02$ Total of nontaxable income = 47.47 Net income = 534.43 Annual net income =534.43*14= 7482.02$ Deduct the exemption Resident 3000 Net taxable income 4482.02*8% = 358.56$ Monthly income tax 358.56 / 12 = 29.88$

12 Answer: case 2 Base salary 309$ + addition high cost of living 247.2$ (309*80%) + addition for cash risk 25.7$ total monthly salary = 581.9$ total monthly salary = 581.9$ Deduct nontaxable income saving box 15.45$ social security contribution (pension) 32.02$ Total of nontaxable income = 47.47 Net income = 534.43 Annual net income =534.43*14= 7482.02$ + ( 200$*6)=8682.02 Deduct the exemption Resident 3000 Wife 500 Sons 2000 (500*4) Net taxable income 3182.02*8% = 254.56$ Monthly income tax 254.56 / 12 = 21.21$

Download ppt "Look into Article No:14 Tax Rates for Income Taxes."

Similar presentations

Chapter 1-1 Tax Accounting. Chapter 1-2 6- What are the sources of income? The income results from the wealth that is owned by the person, which is divided.

Chapter 1-1 Tax Accounting. Chapter What are the sources of income? The income results from the wealth that is owned by the person, which is divided.
Problems. The general rule : 1.Calculate the social insurance exemption separately 2.Calculate annual tax bracket 3.Calculate the tax due.

Problems. The general rule : 1.Calculate the social insurance exemption separately 2.Calculate annual tax bracket 3.Calculate the tax due.
Compounding Interest You are interested in opening a savings account that pays interest at a rate of 6% compounded annually. You deposit $523 as your starting.

Compounding Interest You are interested in opening a savings account that pays interest at a rate of 6% compounded annually. You deposit $523 as your starting.
Income Tax Concepts chapter (2). Tax prepayments: - Employees prepay taxes on wages through payroll-tax withholding. - The tax prepayments are subtracted.

Income Tax Concepts chapter (2). Tax prepayments: - Employees prepay taxes on wages through payroll-tax withholding. - The tax prepayments are subtracted.
Federal Income Tax CONT 110. Terms Adjusted Gross Income Adjustments to Income Earned Income Tax Credit Estimated Tax Payments Exemptions Health Savings.

Federal Income Tax CONT 110. Terms Adjusted Gross Income Adjustments to Income Earned Income Tax Credit Estimated Tax Payments Exemptions Health Savings.
Calculating Sales and Income Tax

Calculating Sales and Income Tax
Historical review Before the year 1967 the tax in Palestine were imposed by the Egyptian government through the law 13/1947 in Gaza strip. And imposed.

Historical review Before the year 1967 the tax in Palestine were imposed by the Egyptian government through the law 13/1947 in Gaza strip. And imposed.
Income: Income includes both taxable and nontaxable types of income Deductions: Deductions are amounts that tax law specifically allows as subtractions.

Income: Income includes both taxable and nontaxable types of income Deductions: Deductions are amounts that tax law specifically allows as subtractions.
Payroll and Short-Term Liabilities

Payroll and Short-Term Liabilities
Case: The following information have been taken from the tax self assessment for taxpayer Omar Hassan Revenues: Monthly salary from employee 2300 NIS Profit.

Case: The following information have been taken from the tax self assessment for taxpayer Omar Hassan Revenues: Monthly salary from employee 2300 NIS Profit.
Case for partner ship A taxpayer is partner in corporation own 40% of capital and has monthly salary 2500 NIS for managing, he is married and has three.

Case for partner ship A taxpayer is partner in corporation own 40% of capital and has monthly salary 2500 NIS for managing, he is married and has three.
Mr. Kasem work as manager for a company with monthly salary 7500 NIS and have bonus addition career 1500 and bonus addition high cost of living 400 and.

Mr. Kasem work as manager for a company with monthly salary 7500 NIS and have bonus addition career 1500 and bonus addition high cost of living 400 and.
Tax Law #3 PRACTICE Zhanat Alimanov, assistant professor.

Tax Law #3 PRACTICE Zhanat Alimanov, assistant professor.
Warm up Joe’s employer pays 60% of his annual medical insurance premiums. The total annual cost per employee is $5,000. Joe is paid bi-weekly. What dollar.

Warm up Joe’s employer pays 60% of his annual medical insurance premiums. The total annual cost per employee is $5,000. Joe is paid bi-weekly. What dollar.
Worshipful Company of Tax Advisers

Worshipful Company of Tax Advisers
Dr. Mohamed A. Hamada Lecturer of Accounting Information Systems 1-1 Chapter 3 Tax on Salaries and Like Payments.

Dr. Mohamed A. Hamada Lecturer of Accounting Information Systems 1-1 Chapter 3 Tax on Salaries and Like Payments.
Financial Algebra © Cengage/South-Western Slide 1 9-1 RETIREMENT INCOME FROM SAVINGS Calculate future values of retirement investments that are both single.

Financial Algebra © Cengage/South-Western Slide RETIREMENT INCOME FROM SAVINGS Calculate future values of retirement investments that are both single.
Definition of a tax What is a tax?

Definition of a tax What is a tax?
Case (3): Mr. Marwan work as manager for a company with: - monthly salary 9000 NIS and has, - additional bonus of career 1500, - additional bonus of high.

Case (3): Mr. Marwan work as manager for a company with: - monthly salary 9000 NIS and has, - additional bonus of career 1500, - additional bonus of high.
Vocabulary. Section 9.1 Vocabulary Pre-tax dollars: Deposit into a retirement account before taxes have been taken out of your paycheck. This lowers your.

Vocabulary. Section 9.1 Vocabulary Pre-tax dollars: Deposit into a retirement account before taxes have been taken out of your paycheck. This lowers your.

Similar presentations

Ads by Google