Appendix E(3) (cont'd)
(iv) EXAMPLES OF THE CALCULATION OF SALARIES
TAX UNDER THE CLAWBACK SYSTEM
-
Example 1 Single person earning $36,000 per annum
Income
$ 36,000
Less : Personal allowance
$29,000
Additional allowance Less: "Clawback" 10% of
($36,000 - $34,000)
$5,000
200
4,800
33,800
Net chargeable income
$ 2,200
Tax payable thereon
$110
Example 2 - Married person, with no children,
earning $84,000 per annum
Income
Example 3
-
$84,000
Less Personal allowance
$60,000
Additional allowance Less: "Clawback" 10% of
$10,000
($84,000 - $70,000)
1,400
8,600
68,600
Net chargeable income
$ 15,400
Tax payable thereon
$1,040
Married person, with two children, earning $150,000 per annum
Income
$150,000
Less Personal allowance
$60,000
Additional allowance Less: "Clawback" 10% of
($150,000 - $70,000)
$10,000
8,000
2,000
$62,000
Child allowance
Net chargeable income
Tax payable thereon
- 78 -
-
19,000
81,000
$ 69,000
$ 10,750