Subjects taxation

Monthly Pension 074999

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Monthly Pension 074999


1. **State the problem:** Calculate Mr. Mckenzi's monthly pension amount that is tax deductible given his gross salary and deductions. 2. **Given data:** - Gross monthly salary = 23500 - Pension deduction = 2575 - Medical aid deduction = 1200 - UIF deduction = 1% of gross salary 3. **Calculate UIF deduction:** $$\text{UIF deduction} = 1\% \times 23500 = 0.01 \times 23500 = 235$$ 4. **Calculate total deductions:** $$\text{Total deductions} = 2575 + 1200 + 235 = 4010$$ 5. **Calculate annual taxable income:** Annual gross salary: $$23500 \times 12 = 282000$$ Annual deductions: $$4010 \times 12 = 48120$$ Annual taxable income: $$282000 - 48120 = 233880$$ 6. **Calculate monthly pension tax deductible:** The pension deduction is already given as 2575 monthly, so the tax deductible pension amount is: $$2575$$ **Final answer:** The monthly pension amount that is tax deductible is **2575**. (Note: The user also asked for annual taxable income and tax calculations, but per instructions, only the first question is answered here.