tax declaration ‫المحاضرة الرابعه د ايمان‬

Total Revenue 200,000

(-) Expenses, and cots (40,850)
Salaries to Assistants (15,000)
travel expense (5000)
Stationary expenses (6,000)
Depreciation expense (20,000 X 10% X 1 year) (2,000)
Syndicate subscription (200)
2
joint expense (1,200 X ) (800)
3

Rent expense ( 2,000)

utilities expense (400)
Stamp tax (500)
Depreciation expense. (8750)
3
( 20,000 X 25% X =1250 and 30,000 X 25% X 1 Year = 7500 )
12
1
Cost of engineering books (400 x ) (200)
2

Total Annual deductible cost and expenses (40,850)

Net Revenue. before donations 159,150

* Notes ‫مهم جدا‬

1- Cash basis is applied.
2- Travelling expense to Suria are deductible.
3- since Revenue earning are also taxable
4- subscription to Ahly Club. are Not deductible (private expenses)
 (B) Costs which are deducted from net revenue

Net. revenue = total taxable rev – expenses to practice profession

1-donations
A. donation paid to the Government, local units of Administration , Public authority are deductible, but Not
more than the Annual Net Revenue.
B. donation paid to National Egyptian Society , Registered charity , educational institution and hospitals
under Government Supervision, deductible Amount Should Not exceed 10% of Net Revenue or the Paid
Amount Which ever is Low.
C. donation to poor people or children Not Register Are Non Deductible.
Note: If the Annual result is loss, donation are Not deductible.

2- Annal life and health insurance Premium Paid for his own use or wife or Minor children.

3. Contribution to syndicate pension funds.

Note The total Amount for items (2.3) should Not exceed 3000 annually or the paid amount which ever is
low

** Revenues which are Not supported by Regular Record.

-Revenues are estimated on arbitrary base yearly, then all costs and expenses are estimated by 10%. of the
total Revenues.

Note Items (2+3) health + pensions above mention are Not deductible if the tax payer doesn't hold regular
books ( Since all costs are estimated by 10% of total Revenue).
Ex 4 Mohamed has a CPA firm, The for 2020 As follows:

A - revenue Received during the year.

1 - fees of Accounting services 12,000 (6,000 belong 2021 and 5,000 belong to 2022)
2- unearned Revenues 5,000 ( to be done 2023).
3- 27,000 Capital gain.

B - Expenses Paid during the year:

1- 9.000 Salaries of Assistant
2- 1,200 office Rent.
3- 480 car expense( used also personally).
4- 120 duties of registration in syndicate.
5- 250 Price of Academic book.
6- 200 Subscriptions in syndicate in pension fund.
7- 3,500 insurance Premium for his wife.
8- 6,000 donation (500. to Government and the Rest to N.H.S. approved by Government).
9- an equipment Was purchased in Jan. 1 2022 for 20,000 ( Depreciation Rate 20%).
Required: Determine taxable Net revenue in the tax base and keep's regular books.
 Tax declaration
fees of accounting services. 12,000

Un earned revenue 5,000

Capital gain 27,000

Total rev 44,000

(-) costs & expenses necessary to practice the profession

Salaries and assistants (9,000)

Office rent (1,200)

2 (320)
Car Expense (480 X )
3

Academic book (250)

Duties of registration (120)
Depreciation of fixed assets (4,000)
(20,000 X 20 % X 1 Year )
Total costs & expenses (14,890)
Net rev before donation 29,110

Donation paid to the government (500)

Approved N.H.S by government (2,911)

( max 10% X 29,110 = 2,911
Actual paid = 5,500 )
Total donation ( 3,411)
Net rev after donation 25,699
( Max 3,000 and actual paid 2,000+3,500 =3,700)

Pension + insurance premium 3,000

Net taxable rev on the tax base 22,699