Certainly! Let's solve the problem step-by-step.
### Q.3.9.1 Calculate how much tax an individual on an annual salary of R325,000 per year, would pay.
1. Determine the applicable tax bracket:
- The annual salary of R325,000 places the individual in the tax bracket for R258,751 to R358,110.
2. Apply the base tax and additional taxable income:
- From the tax brackets, we know:
- For an income up to R165,600: The tax payable is R29,808 (calculated already in the base tax).
- For an income between R165,601 and R258,750: Additional 25% of the amount above R165,600.
- For an income between R258,751 and R358,110: The base tax for this bracket is R53,096, plus 30% of the amount above R258,750.
3. Calculate the tax payable for an income of R325,000:
- The base tax amount for the R258,751 to R358,110 bracket is R53,096.
- Amount above R258,750 within this bracket:
[tex]\( R325,000 - R258,750 = R66,250 \)[/tex]
- Calculating the additional tax:
[tex]\( 30\% \, \text{of} \, R66,250 = 0.30 \times 66,250 = R19,875 \)[/tex]
- Total tax payable:
[tex]\( R53,096 + R19,875 = R72,971 \)[/tex]
So, the tax an individual on an annual salary of R325,000 has to pay is R72,971.
### Q.3.9.2 Calculate the average rate of tax paid by the individual earning R325,000 per year.
1. Tax paid:
- The tax payable on an annual salary of R325,000 is R72,971.
2. Annual salary:
- The annual salary is R325,000.
3. Average tax rate calculation:
- The average tax rate is calculated as:
[tex]\[
\text{Average tax rate} = \left( \frac{\text{Tax paid}}{\text{Annual salary}} \right) \times 100
\][/tex]
[tex]\[
\text{Average tax rate} = \left( \frac{72,971}{325,000} \right) \times 100 = 0.22452615384615385 \times 100 \approx 22.45\%
\][/tex]
Therefore, the average rate of tax paid by the individual earning R325,000 per year is approximately 22.45%.
