Example 2 - Married couple, with two children, husband earning $106,000
and wife earning $50,000 per annum
Income after outgoings and charitable
donations
$156,000
Less: Personal and Wife Allowances
$66,000
Additional Allowance
$14,000
$ 80,000
$ 76,000
Add: Clawback adjustment (Note A)
10%($156,000 - $60,000 - $14,000)
$
7,600
$ 83,600
Less: Working Wife Allowance
$15,000
Child Allowance
$22,000
$ 37,000
Net Chargeable Income
$ 46,600
Tax payable thereon
[Net Additional Allowance (Note B): $14,000 - $7,500 $6,400]
=
$3,990
==
Example 3 Single person, with one child, earning $100,000 per annum.
Single Parent Allowance is due.
Income after outgoings and
charitable donations
Less:
Personal Allowance
Additional Allowance
Add:
Clawback adjustment (Note A)
10% ($100,000-$32,000-$7,000)
Less:
Single Parent Allowance
Child Allowance
Net Chargeable Income
$
100,000
32,000 7.000
39,000
61,000
6,100
67,100
20,000
13,000
33,000
34,100
2,292
Tax payable thereon
[Net Additional Allowance (Note B): $7,000-$6,100-$900]
Note A: Clawback Adjustment
=
10% (income after deductions less Personal/Wife Allowance less Additional Allowance).
Note
B: Net Additional
Adjustment.
Allowance-Additional Allowance Allowance-Additional
Allowance less Clawback
:
Page 75Page 76
No comments yet.
Private notes are available after approval.