1. 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 cost of living 750 and, - additional bonus of travel 250. Required: 1. Calculate the income tax if you know that he is married and has 2 sons, One of them study in Palestine university. 1. Calculate the income tax if you know that he is married and has 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.

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

3. 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=973 NIS Salary after income tax = 11500-973=10527 NIS

4. Important note: Tax evasion Tax avoidance What is the main difference between them? Tax evasion is illegal work and that stands by offering wrong information and false documents to pay less payment of the accrued tax. Tax avoidance is legal work by following the procedures of income tax law and get the best and largest of deductions and exemptions by searching for the way that make the tax payment very little.

5. it is important to say that tax avoidance is accepted by the tax officer to prevent illegal tax evasion. To reach the tax avoidance which is legal operation, every taxpayer should be think about the way and the most suitable condition for the project type Trading or service or industrial project, ….. Every type has different way for making the best legal tax avoidance.

6. Look into Article No:6 & 7

7. Case (4): Mr. Jehad work in the Investment Bank with monthly base salary 309$ and additional bonus of high cost of living amounted 80% of base salary. and additional bonus 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.

8. Answer: case 1 Base salary = 309$ + additional bounce of high cost of living =(309*80%)= 247.2$ + additional bounce 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 (Monthly) = 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$

9. Answer: case 2 Base salary = 309$ + addition high cost of living =(309*80%)= 247.2$ + 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 (Monthly) = 534.43 Net income (Monthly) = 534.43 Annual net income =534.43*14= 7482.02$ + ( 200$*6)=8682.02 Deduct the exemption Resident =3000 Wife = 500 Sons (500*4) = 2000 Net taxable income = 3182.02*8% = 254.56$ Monthly income tax = 254.56 / 12 = 21.21$