how much tax to pay? - Printable Version +- Accountancy Forum (https://www.accountancy.com.pk/forum) +-- Forum: The Profession (https://www.accountancy.com.pk/forum/forumdisplay.php?fid=4) +--- Forum: Tax (https://www.accountancy.com.pk/forum/forumdisplay.php?fid=8) +--- Thread: how much tax to pay? (/showthread.php?tid=10276) |
how much tax to pay? - poliasha18 - 08-22-2011 How much would a person earning 30,001 pay in taxes if we use this table -------------------------- First #8358;30,000 5% Next #8358;30,000 10% Next #8358;50,000 15% Next #8358;50,000 20% Over #8358;160,000 25% No tax is payable on annual income of N30,000 or less ------------------------------------------------------- - poliasha18 - 08-22-2011 For me this table seems confusing. But this is what is written in official documents of the country. What do they mean by " First"? Please help, - student_of_law - 08-22-2011 <blockquote id="quote"><font size="1" face="Verdana, Arial, Helvetica, san" id="quote">quote<hr height="1" noshade id="quote"><i>Originally posted by poliasha18</i> <br />For me this table seems confusing. But this is what is written in official documents of the country. What do they mean by " First"? Please help, <hr height="1" noshade id="quote"></font id="quote"></blockquote id="quote"> Would you tell to which country this table relates? As far as I understand it means If you see the last entry it says, over 160,000. And if you calculate the total of earlier slabs (30k + 30k+ 50k+ 50k), it also amounts to 160,000 So it says that first 30,000 units of a person's earning shall be taxed at the rate of 5% if the income exceeds 30,000 the exceeding portion will be taxed at 10% if the income exceeds 60,000, the exceeding portion shall be taxed at 15%............. and so on further illustration is if a person has a taxable income of 200,000, we will break it as follows 30,000 + 30,000 + 50,000 + 50,000 + 40,000 For first 30,000 @ 5% = 1500 For next 30,000 @ 10% = 3000 for next 50,000 @ 15% = 7500 for next 50,000 @ 20% = 10,000 for next 40,000 @ 25% = 10,000 Total tax payable is 1500 + 3000 + 7500 + 10000 + 10,000 = |