Siavash Eftekhari:
#holiday_tax
Hello, many questions are asked about the Eid tax, in a simple and concise way to calculate the Eid tax this month, do as follows, I will explain with a simple example:
Suppose a person’s monthly taxable salary and benefits is 25,000,000 Rials (it is assumed that this final amount is taxable for each month) and the monthly tax exemption according to 2016 is 20,000,000 Rials.
In the month of April, salaries and benefits will be subject to annual tax after deducting their salary exemption
25,000,000 – 20,000,000 = 5,000,000
And finally the annual and monthly tax for the first year
5,000,000 * 10% = 500,000
In the second month, i.e. May, the annual salary and benefits until the 2nd month will be 50,000,000 Rials.
2*25,000,000 = 50,000,000
The amount of annual exemption until the desired month is 40,000,000 Rials.
2*20,000,000 = 40,000,000
Taxable salaries after deducting the annual exemption up to the desired month:
50,000,000 – 40,000,000 = 10,000,000
And finally, the year to month tax is desired
10,000,000 * 10% = 1,000,000
The tax is paid in the second month
1,000,000 – 500,000 = 500,000
That is, the total tax (annual) until the end of the second month, minus the tax of the first month
If it is calculated monthly, it will be the same as the calculation of the first month
This process will continue until the month of 11
In the 11th month, an Eid payment is made, assuming maximum and full functionality, the Eid amount in 2016 will be 27,897,930, Eid includes a certain exemption for one month, that is, 20,000,000 Rials.
7,897,930 Rials are subject to 10% tax from the Eid amount
27,897,930 – 20,000,000 = 7,897,930
So the Eid tax is 789,793 rials.
7,897,930 * 10% = 789,793
So we can say annually and cumulatively, the sum of the salary and benefits included in the year is up to the 11th month, 11 months of salary and benefits included + contribution from Eid:
11*25,000,000 = 275,000,000
275,000,000 + 7,897,930 = 282,897,930
The amount of annual exemption is up to the desired month
220,000,000 Rials
11*20,000,000 = 220,000,000
So the amount of taxable salary and benefits after deducting the annual exemption until the end of the month will be 11
282,897,930 – 220,000,000 = 62,897,930
And the amount of annual tax will be until the 11th month
62,897,930 * 10% = 6,289,793
And the amount of tax for the month is the tax for the year to month minus the total up to last month:
6,289,793 – 5,000,000 = 1,289,793
This amount includes 500,000 salary tax and 789,793 Rials of Eid tax.
In the month of 12 means the last month of the year
The sum of annual salaries and benefits until the end of the year is:
(12 * 25,000,000) = 300,000,000 + 7,897,930 = 307,897,930
The annual exemption amount is:
12*20,000,000 = 240,000,000
Subject to annual tax:
307,897,930 – 240,000,000 = 67,897,930
The tax is for the year
67,897,930 * 10% = 6,789,793
The last month’s tax is:
6,789,793 – 6,289,793 = 500,000
One of my writing friends should read this, I hope it will help you
This post is written by Mppp4