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Mr Buti, a 55-year-old salesman earned a gross income of R27 678 per month during the 2020/2021 tax year. A monthly deduction of 7,5% was made from his salary and paid into his pension fund. Show, by means of calculations, that Mr Buti's monthly tax was R4 037,38.

Mathematics

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5.1.1

Step 1: Calculate Mr. Buti's annual gross income.
Mr. Buti's monthly gross income is R27 678.

Annual Gross Income=R27 678×12=R332 136\text{Annual Gross Income} = \text{R}27\,678 \times 12 = \text{R}332\,136

Step 2: Calculate Mr. Buti's annual pension deduction.
A monthly deduction of 7.5% is made from his salary for his pension fund.

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