7.5 Applications of Percentages ─ Calculation of Taxes

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Presentation transcript:

7.5 Applications of Percentages ─ Calculation of Taxes Additional Example 9 Additional Example 10 Additional Example 11 Additional Example 12 © SNP Panpac (H.K.) Ltd.

Additional Example 9 Wilson owns a flat. If the rateable value of the flat is $86 000 and the rate percentage is 5%, find the quarterly rates that Wilson should pay. Solution © SNP Panpac (H.K.) Ltd.

Solution Quarterly rates = $86 000  5  4 = $1 075 Additional Example 9 Wilson owns a flat. If the rateable value of the flat is $86 000 and the rate percentage is 5%, find the quarterly rates that Wilson should pay. Solution Quarterly rates = $86 000  5  4 = $1 075 © SNP Panpac (H.K.) Ltd.

Additional Example 10 Simon rents a property out at $24 000 each month. He pays the rates of $3 200 quarterly. (a) Let the rate percentage be 5. Find the rateable value of the property. Solution (b) Let the standard rate be 16%. Find the property tax that Simon pays. Solution © SNP Panpac (H.K.) Ltd.

Solution (a) The rateable value = $3 200  4  5 = $256 000 Additional Example 10 Simon rents a property out at $24 000 each month. He pays the rates of $3 200 quarterly. (a) Let the rate percentage be 5. Find the rateable value of the property. (b) Let the standard rate be 16%. Find the property tax that Simon pays. Solution (a) The rateable value = $3 200  4  5 = $256 000 Q10(b) (b) The assessable value = $(24 000  12 – 3 200  4) = $275 200 Property tax = $275 200  80  16 = $35 225.6 © SNP Panpac (H.K.) Ltd.

Additional Example 11 ABC company is a trading company. Last year, the company imported goods of $42 000 000 and exported at a value of $46 500 000. The operating expenses of the company were $168 000 each month. Solution (a) Find the gross profits. Solution (b) Find the net profits. (c) Let the profits tax rate be 16. Find the profits tax that the company had to pay. Solution © SNP Panpac (H.K.) Ltd.

Solution (a) Gross profits = $(46 500 000 – 42 000 000) = $4 500 000 Additional example 11 ABC company is a trading company. Last year, the company imported goods of $42 000 000 and exported at a value of $46 500 000. The operating expenses of the company were $168 000 each month. (a) Find the gross profits. (b) Find the net profits. (c) Let the profits tax rate be 16. Find the profits tax that the company had to pay. Solution (a)　Gross profits = $(46 500 000 – 42 000 000) Q11(b) = $4 500 000 (b)　Net profits = $(4 500 000 – 168 000  12) Q11(c) = $2 484 000 (c)　Property tax = $2 484 000  16 = $397 440 © SNP Panpac (H.K.) Ltd.

Allowance for salaries tax Progressive rate of salaries tax Additional Example 12 Assessment year: 2004/05 Allowance for salaries tax Basic allowance $100 000 Married person’s allowance $200 000 Child allowance For each of the 1st – 9th child $30 000 Progressive rate of salaries tax Net chargeable income Tax rate First $30 000 2% Next $30 000 8% 14% Remaining 20% Mr. and Mrs. Wong have 5 children. If their income was $460 000, find their salaries tax for that year. Solution © SNP Panpac (H.K.) Ltd.

Allowance for salaries tax Progressive rate of salaries tax Additional Example 12 Assessment year: 2004/05 Mr. and Mrs. Wong have 5 children. If their income was $460 000, find their salaries tax for that year. Allowance for salaries tax Basic allowance $100 000 Married person’s allowance $200 000 Child allowance For each of the 1st – 9th child $30 000 Progressive rate of salaries tax Net chargeable income Tax rate First $30 000 2% Next $30 000 8% 14% Remaining 20% Solution Total allowance = $(200 000 + 30 000  5) = $350 000 Net chargeable income = $(460 000 – 350 000) = $110 000 © SNP Panpac (H.K.) Ltd.

Allowance for salaries tax Progressive rate of salaries tax Additional Example 12 Assessment year: 2004/05 Mr. and Mrs. Wong have 5 children. If their income was $460 000, find their salaries tax for that year. Allowance for salaries tax Basic allowance $100 000 Married person’s allowance $200 000 Child allowance For each of the 1st – 9th child $30 000 Progressive rate of salaries tax Net chargeable income Tax rate First $30 000 2% Next $30 000 8% 14% Remaining 20% Solution Net chargeable income Tax rate Tax First $30 000 2 $600 Next $30 000 8 $2 400 Next $30 000 14 $4 200 Remaining $20 000 20 $4 000 + Remaining = $110 000 – $30 000 –$30 000 – $30 000 Net chargeable income = $110 000 Total salaries tax = $11 200 © SNP Panpac (H.K.) Ltd.