Unfortunately, these salary tax calculation tables for 2017, which are growing and spreading like mushrooms in all groups, are wrong.
The final approved text of how to calculate employee salary tax in 2017 in public is as follows:
The tax exemption limit subject to Article (84) of the Direct Taxes Law is set at 276,000,000 Rials annually. The tax rate on the total income of government and non-government employees, including salaries and benefits, extraordinary and working, etc., with the exception of Note 1 and 2 of the Law on Direct Taxes related to research and academic affairs (first step), the excess of the above amount up to three times is subject to annual tax 10% and (second level) for three times the surplus, up to four times it is subject to annual tax of 15% and (third level) for four times the surplus, up to six times 25% and (fourth level) for six times the surplus 35% is determined The amount of tax exemption for persons subject to articles (57) and (101) of the Direct Taxes Law is set at the amount of 216,000,000 Rials annually.
@Phesab_ir
Now we will explain how to calculate with an example.
My taxable salary and benefits in 2017 is 170,000,000 rials per month.
If we divide the annual exemption amounting to 276,000,000 Rials into 12 months, the monthly exemption amount will be 23,000,000 Rials.
So, as a result, I am exempt up to 23,000,000.
@Phesab_ir
1⃣ Calculation of the first step:
The excess of the mentioned amount up to three times is subject to the annual tax of 10%, which means up to three times the exemption at the rate of 10%, as a result
23,000,000 × 3 = 69,000,000
That means, in fact, the amount of 69 million Rials is calculated at the rate of 10%
69,000,000 × 10% = 6,900,000
First step tax
And the roof of the first step
23,000,000 + 69,000,000 = 92,000,000
So now up to 92 million rials have been calculated for me.
@Phesab_ir
2⃣ Calculation of the second step:
Regarding the surplus of three times, to four times, it is subject to annual tax of 15%, that is, from 3 to 4 times, it is calculated at the rate of 15%.
In fact, the taxable amount of this step is equal to an exemption, that is, 23 million Rials, as a result, this step is taxed
23,000,000 × 15% = 3,450,000
So far the salary is calculated for tax
92,000,000+23,000,000=115,000,000
Or you can say
23,000,000 x 5 = 115,000,000
Tax calculation up to this step
6,900,000 + 3,450,000 = 10,350,000
@Phesab_ir
3⃣ Calculation of the third step tax:
compared to four times the excess, up to six times 25%, that is, in this step, there are two more exemptions compared to the previous step, as a result
23,000,000 × 2 = 46,000,000
That is, the taxable amount of this step is 46,000,000 rials, which is calculated with a 25% factor.
46,000,000 × 25% = 11,500,000
The tax for this step is 11,500,000
As a result, our total tax up to the third step is (115,000,000 + 46,000,000) 161,000,000 rials.
6,900,000 + 3,450,000 + 11,500,000 = 21,850,000
@Phesab_ir
4⃣ Calculation of the fourth step tax:
In relation to the six-fold surplus at the rate of 35%, this sentence means that whatever is more than the ceiling of the previous step (161,000,000 Rials) should be calculated at the rate of 35%.
As a result, according to the above example, I will reach the fourth step with a salary of 170,000,000 Rials.
170,000,000 – 161,000,000 = 9,000,000
9,000,000 × 35% = 3,150,000
As a result, the total tax is 17 million serials:
6,900,000 + 3,450,000 + 11,500,000 + 3,150,000 = 25,000,000
@Phesab_ir
This post is written by AccPooya