Solution

Basic salary = 800 × 12 9,600

Add: Variable wages:

Special raise (450 × 12) = 5400
Production incentives (300 × 12) = 3,600
Nature of work allowance (200 × 12) = 2,400
Reception allowance (400 × 12) = 4,800
Overtime (100 × 12) = 1,200 17,400
_________ _______
= Total revenues 27,000

Deduct:
1. Exempted revenues by special laws:
 Social raise = 5400 (5,400)

2. Exempted amounts by Article no.13:

 Personal exemptions (4,000)
 Social insurance:
For basic salary = 8,400 × 14% = 1176
For variable costs = 6,000 × 11% = 660 (1836)
_______
= Net revenues 15,764

Deduct: Life insurance:

Amount paid (150 × 12)+ life insurance 1500= 3,300
(15%x15,764) = 2364.6 or 3,000
Deduct: Amount paid (3000)
_______

= Net income 12,764

Deduct: Personal deductions (free slice) (5,000)

_______
= Taxable income 7,764

 Annual tax due = 7,764 x 10% = L.E. 776

 Monthly tax due = 776 / 12 month = L.E. 64.67
Basic salary = 1,000 × 12 12,000

Add: Variable wages:

Special raise 5,400
Production incentives 3,600
Nature of work allowance 2,400
Reception allowance 4,800
Overtime (200 × 12) = 240 18,600
_________ _______
= Total revenues 30,600

Deduct:
3. Exempted revenues by special laws:
 Social raise = 5400 (5,400)

4. Exempted amounts by Article no.13:

 Personal exemptions (4,000)
 Social insurance:
For basic salary = 8,400 × 14% = 1176
For variable costs = 6,000 × 11% = 660 (1836)
_______
= Net revenues 19,364

Deduct: Life insurance:

Amount paid (150 × 12)+ life insurance 1500= 3,300
(15%x15,764) = 2364.6 or 3,000
Deduct: Amount paid (3000)
_______

= Net income 16,364

Deduct: Personal deductions (free slice) (5,000)

_______
= Taxable income 11,364

 Annual tax due = 11,364 x 10% = L.E. 1,136

 Monthly tax due = 776 / 12 month = L.E. 94.67
Basic salary = (800 ×6) +(200x6) 10,800

Add: Variable wages:

Special raise 5,400
Production incentives 3,600
Nature of work allowance 2,400
Reception allowance 4,800
Overtime (100 ×6)+(200x6) =1,800
Bonus 2,000 20,000
_________ _______
= Total revenues 30,800

Deduct:
5. Exempted revenues by special laws:
 Social raise = 5400 (5,400)

6. Exempted amounts by Article no.13:

 Personal exemptions (4,000)
 Social insurance:
For basic salary = 8,400 × 14% = 1176
For variable costs = 6,000 × 11% = 660 (1836)
_______
= Net revenues 19,564

Deduct: Life insurance:

Amount paid (150 × 12)+ life insurance 1500= 3,300
(15%x15,764) = 2364.6 or 3,000
Deduct: Amount paid (3000)
_______

= Net income 16,564

Deduct: Personal deductions (free slice) (5,000)

_______
= Taxable income 11,564

 Annual tax due = 11,564 x 10% = L.E. 1,156

 Tax paid = (64.67x6) + (94.67x6) +200 = L.E. 1,156