Non-Salaried and Corporate Executive

[abbas_chinikham]

As per my Auditor, any person whose salary exceeds 500,000 is a corporate executives.

And actual Tax calculation is

' Dear Mr. Abbas,

Amounts are calculated in budget comments as follows;

Taxable income excluding bonus 1,000,000 x Tax rate applicable on 1,000,000 slab @ 9% = 90,000 tax liability
IDP tax = Tax liability 90,000 x 5% = 4,500

Tax on bonus

IDP Tax on bonus @ 30%

Tax rate on total income including bonus 11%

Differential = 30% - 11% = 19%

Tax on bonus = 250,000 bonus x 19% = 47,500


Regards,

Abbas Shabbir