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Tutorial 4 Chapter 2 Salaries & Like Problem 1 Tax Settlement

This document contains three tax problems related to calculating taxable income and tax due for different employment situations in Egypt: 1) Calculating the net taxable revenue, tax due, and tax settlement report for an employee with a basic salary plus various allowances, a mid-year raise, and production incentive. 2) Calculating the tax due for a foreign expert invited to perform surgeries in Egypt who receives per diem payments in both Egypt and abroad. 3) Calculating the tax due for a daily worker receiving a fixed daily wage from August to December with life insurance premiums.

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31 views

Tutorial 4 Chapter 2 Salaries & Like Problem 1 Tax Settlement

This document contains three tax problems related to calculating taxable income and tax due for different employment situations in Egypt: 1) Calculating the net taxable revenue, tax due, and tax settlement report for an employee with a basic salary plus various allowances, a mid-year raise, and production incentive. 2) Calculating the tax due for a foreign expert invited to perform surgeries in Egypt who receives per diem payments in both Egypt and abroad. 3) Calculating the tax due for a daily worker receiving a fixed daily wage from August to December with life insurance premiums.

Uploaded by

aly
Copyright
© © All Rights Reserved
Available Formats
Download as PDF, TXT or read online on Scribd
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Taxation Spring 2019

Tutorial 4 Chapter 2 Salaries & Like


Problem 1 Tax Settlement
An employee in the private sector earns the following monthly amounts:
L.E. 1400 as a Basic Salary (of which 160 as special increment),
representation allowance of L.E. 120, housing allowance of L.E. 100,
social increment of L.E. 130, special increment not added to basic salary
of L.E. 150. Starting the 1st of July, he was granted a raise of L.E. 164
and a production incentive of L.E. 200.
If you know that:
- The employee’s share of social insurance for the year was L.E. 2,169.
- He also pays 1,600 annually for a Life Insurance premium for favor
of his wife.
- The tax paid during the year amounted to L.E.180.
Required:
a) Calculate Net Taxable Revenue “Tax Base” for this employee at
year end.
b) Calculate Tax due for this employee.
c) Prepare the Tax Settlement Report for this employee at year end.

1
Taxation Spring 2019

Problem 2 Lump Tax


An Egyptian Hospital invited a foreign expert to perform some surgical
operations in Egypt for the duration from November 2017 till July 2018.
This expert will receive $500 per day in Egypt, and $700 per day shall
be transferred to his bank account abroad.

If you learn that $1= L.E.18

Required: Calculate the Tax Due.


Problem 3 Daily Workers Wage
A daily worker in a private sector company gets L.E. 150 per day
from the 1st of August till end of December 2018. If you learn that:

• He pays insurance premium of L.E. 1,800 annually on his life


for favor of his wife.
• He doesn’t have any other source of income.
Required: Calculate tax due.

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