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

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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$

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