TUTUTORIAL WEEK 1 25 marks 45 minutes

1. Using the following information provided calculate the tax owed by Notmbi, aged
66 and a South African resident, for the 2024 year of assessment:
RAND
Income
Salary per month R45 000
Interest from SA government bonds for the year R60 000
Rental income from an apartment in Northcliff (JHB) R150 000
Rental income from flat in Port Louis, Mauritius. R200 000
Dividends from SA JSE listed company R50 000
Taxable capital gains (net of40%) arising from the sale of a
primary resident in Rose Bank (JHB) R180 000
Expenses
Allowable deductions R20 000
Allowable pension deduction R30 000
Employees tax paid during the year R20 000
Assessed loss c/f (2023) R400
2. What is Ntombi’s marginal rate of tax?
3. What is Ntombi’s average tax rate?
SOLUTION
RAND RAND
Gross Income 1 000 000
Salary 45 000 x 12
540 000✅
Interest (SA)
60 000✅
Rental SA
150 000✅
Rental (MAURITIUS) – SA resident
200 000✅
so include world wide income✅
Dividends
50 000✅
Sale of primary residence - capital
0✅
Less Exempt income (84 500)
SA interest, R60 000 limited to
34 500✅
R34 500 as Ntombi is > 65✅
Dividends – fully exempt SA
company (s10(1)(k) 50 000✅
Income 915 500
Less Deductions (20 000)
Allowable deductions
20 000✅
Employees tax – prohibited
deduction s23 0✅
Taxable income 895 500
Add CGT
180 000✅

(400) ✅
b/f assessed loss (2023)

Taxable income 1 075 500

(30 000) ✅
Less Retirement fund deductions (s
11F)
NET TAXABLE INCOME 1 045 100
Tax per tables
251 258 + 41% (1 045 100- 857 900) 328 010✅

(17 235) ✅
Less Primary rebate
Less Secondary rebate

(9 444) ✅
Tax payable
Less employees’ tax
Tax owed
301 334✅

(20 000) ✅
281 334

2. 41% ✅

3. 301334/1045100 =100 %28.8%✅✅