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A woman earns R356,400 annually. Calculate her income tax if the tax rate is 30%. Then, determine her net salary after tax. Lastly, if she pays 30% tax, what percentage of her salary remains?

Accounting

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4.3.2. Calculate the amount of income tax she will be paying to SARS after her salary increase (using your answer in 4.2).

  1. Identify the new annual salary from question 4.2, which is R356 400.

  2. Calculate 30% of the new annual salary.

    Income tax=30%×R356 400=30100×R356 400=R106 920\text{Income tax} = 30\% \times R356\,400 = \frac{30}{100} \times R356\,400 = R106\,920

    The amount of income tax she will be paying is R106 920\boxed{\text{R106 920}}.

    4.3.3. Calculate how much of her salary she will receive after tax.

  3. Subtract the income tax (from 4.3.2) from her new annual salary (from 4.2).

    Salary after tax=R356 400−R106 920=R249 480\text{Salary after tax} = R356\,400 - R106\,920 = R249\,480

    She will receive R249 480\boxed{\text{R249 480}} after tax.

    4.3.4. If she is paying 30% of her income as income tax what % of her salary is left over?

  4. Subtract the percentage paid as tax from 100%.

    Percentage left over=100%−30%=70%\text{Percentage left over} = 100\% - 30\% = 70\%

    70%\boxed{\text{70\%}} of her salary is left over.

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