Provisional Tax solutions Q1 2018 PDF

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Provisional Tax SOLUTIONS Question 1 - SOLUTION 1) 2nd provisional tax payment Estimated taxable income Tax thereon [(R470 000 - R410 460) x 36% + 97 225] Less Primary Rebate Less 1st provisional tax payment Less employees tax for the full year (35 600 + 37 200) Provisional tax payable on 28 February 2018

470 000 118 659 -13 635 105 024 -21 700 -72 800 10 524

2) Additional tax: Insufficient estimate Bernice is a "small" taxpayer - Her taxable income for the current year of assessment is < R1m. (R550 < R1m) She will pay an additional tax of 20% if her estimate of her taxable income is less than: - the basic amount AND - 90% of her actual taxable income for the year of assessment Estimate < Basic (R470 000 < R480 000) AND: Estimate < 90% of actual [R470 000 < R495 000 (R550' x 90%)] The estimate of R470 000 is < the lowest R480 000. Therefore Bernice will pay additional tax. Calculation

Tax on lowest of R480 000 (basic) and R495 000 (90% of actual) Normal tax at 2017 rates (R480 000 - R410 460) x 36% + R97 225 Less Primary Rebate Less: 1st provisional tax payment Less: 2nd provisional tax payment Less: Employees tax for full year

Additional tax payable

122 259 -13 635 108 624 -21 700 -10 524 -72 800 3 600 x20% R720...