Identify the tax bracket Lesedi will use to calculate her income tax payable and show how the amount of R121 475 in tax bracket 4 was calculated.

Lesedi's monthly taxable income is $\text{R}36\,780.00$.
Her annual taxable income is:

$$\text{R}36\,780.00 \times 12 = \text{R}441\,360.00$$

Compare Lesedi's annual taxable income ($\text{R}441\,360.00$) to the ranges in TABLE 4:

• Bracket 1: $0 - \text{R}237\,100$
• Bracket 2: $\text{R}237\,101 - \text{R}370\,500$
• Bracket 3: $\text{R}370\,501 - \text{R}512\,800$ Lesedi's income of $\text{R}441\,360.00$ falls within the range of Bracket 3.

The tax bracket Lesedi will use is $\boxed{\text{Bracket 3}}$.

2.2.2 Show how the amount of R121 475 in tax bracket 4 was calculated.

The amount $\text{R}121\,475$ in tax bracket 4 represents the total tax payable on the maximum income of the preceding tax bracket (Bracket 3). This is calculated by summing the tax from Bracket 1, the tax from Bracket 2, and the tax from Bracket 3.

Taxable income in Bracket 1: $\text{R}237\,100 - \text{R}0 = \text{R}237\,100$
Tax rate for Bracket 1: $18\%$
Tax for Bracket 1:

$$\text{R}237\,100 \times 0.18 = \text{R}42\,678.00$$

Taxable income in Bracket 2: $\text{R}370\,500 - \text{R}237\,100 = \text{R}133\,400$
Tax rate for Bracket 2: $26\%$
Tax on this portion:

$$\text{R}133\,400 \times 0.26 = \text{R}34\,684.00$$

Cumulative tax up to the end of Bracket 2:

$$\text{R}42\,678.00 + \text{R}34\,684.00 = \text{R}77\,362.00$$

Taxable income in Bracket 3: $\text{R}512\,800 - \text{R}370\,500 = \text{R}142\,300$
Tax rate for Bracket 3: $31\%$
Tax on this portion:

$$\text{R}142\,300 \times 0.31 = \text{R}44\,113.00$$

Cumulative tax up to the end of Bracket 3:

$$\text{R}77\,362.00 + \text{R}44\,113.00 = \text{R}121\,475.00$$

The amount of $\text{R}121\,475$ in tax bracket 4 is the sum of the tax from Bracket 1, Bracket 2, and Bracket 3, as shown above.