School of International Business Introduction to Tax Accounting (ACC352)
Fall 2023 Quiz 1-1
1/11/2023
Name : ----------------------------------------
ID : ---------------------------------------
Group/ Section : -------------------------------
Question 1: (10 Marks )
Omar works in a private sector company and has an annual revenue from his basic and variable
salary totaling 200,000.
Additional Information:
Omar’s share in social insurance is 4000 L.E. annually, and the high-cost allowance is 120 per
month. He also uses the company car for work purposes only with an annual expense of 100,000.
He has medical insurance for 4000 per year and pays 400 monthly for the syndicate pension fund.
Required: 1) Calculate the salaries and the like tax base.
2) Calculate the monthly due tax.
Solution
Total annual revenues 200,000
Second the deductions:
Social allowance 4000
High cost allowance (120 x 12) 1,440
Total deductions
(5,440)
Net Revenue before private insurance funds and life insurance 194,560
Deduct:
Compare between 10,000 insurance exemption limit
(8,800)
and 29,184 (15% x194,560) of annual revenue
and Paid insurance 4000 + (400 x 12) = 8,800 and take the smallest
Taxable Net Revenues 185,760
1) Calculating the tax base:
Taxable Net Revenues 185,760
Personal exemption 15,000 L.E. (15,000)
Exempted Bracket (21,000)
Tax Base 149,760
School of International Business Introduction to Tax Accounting (ACC352)
Fall 2023 Quiz 1-1
1/11/2023
Name : ----------------------------------------
ID : ---------------------------------------
Group/ Section : -------------------------------
2) Calculating the due tax:
The brackets The tax base Rates The tax
First bracket 9,000 2.5% 225
Second bracket 15,000 10% 1,500
Third bracket 15,000 15% 2,250
Remining 110,760 20% 22,152
Total 149,760 26,127
The monthly due tax = 26,127 / 12 month = 2,177.25 L.E.
