1. 7.5 Applications of Percentages ─ Calculation of Taxes
Additional Example 9
Additional Example 10
Additional Example 11
Additional Example 12
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2. Additional Example 9
Wilson owns a flat. If the rateable value of the flat is $ and the rate percentage is 5%, find the quarterly rates that Wilson should pay.
Solution
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3. Solution Quarterly rates = $86 000  5  4 = $1 075
Additional Example 9
Wilson owns a flat. If the rateable value of the flat is $ and the rate percentage is 5%, find the quarterly rates that Wilson should pay.
Solution
Quarterly rates
= $  5  4
= $1 075
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4. Additional Example 10
Simon rents a property out at $ 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
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5. Solution (a) The rateable value = $3 200  4  5 = $256 000
Additional Example 10
Simon rents a property out at $ 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
= $
Q10(b)
(b) The assessable value = $(  12 –  4)
= $
Property tax = $  80  16
= $
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6. Additional Example 11
ABC company is a trading company. Last year, the company imported goods of $ and exported at a value of $ The operating expenses of the company were $ 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
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7. 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 $ and exported at a value of $ The operating expenses of the company were $ 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 = $( – )
Q11(b)
= $
(b)　Net profits = $( –  12)
Q11(c)
= $
(c)　Property tax = $  16
= $
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8. Allowance for salaries tax Progressive rate of salaries tax
Additional Example 12
Assessment year: 2004/05
Allowance for salaries tax
Basic allowance $
Married person’s allowance $
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 $ , find their salaries tax for that year.
Solution
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9. 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 $ , find their salaries tax for that year.
Allowance for salaries tax
Basic allowance $
Married person’s allowance $
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
= $(  5)
= $
Net chargeable income
= $( – )
= $
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10. 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 $ , find their salaries tax for that year.
Allowance for salaries tax
Basic allowance $
Married person’s allowance $
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 $  $600
Next $  $2 400
Next $  $4 200
Remaining $  $4 000 +
Remaining
= $ – $ –$ – $30 000
Net chargeable income = $
Total salaries tax = $11 200
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