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    AC405 Assignment R185840R

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    Diatomspinalcord
    This document contains information about Mr. Moyo's employment income tax computation for Superstar Pvt Ltd and Telco Pvt Ltd. It provides details of Mr. Moyo's various employment benefits and income, and calculates his taxable income and tax payable. It also outlines Superstar Pvt Ltd's responsibilities regarding withholding and remitting PAYE for its employees.

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    AC405 Assignment R185840R

    Uploaded by

    Diatomspinalcord
    26 views3 pages
    This document contains information about Mr. Moyo's employment income tax computation for Superstar Pvt Ltd and Telco Pvt Ltd. It provides details of Mr. Moyo's various employment benefits and income, and calculates his taxable income and tax payable. It also outlines Superstar Pvt Ltd's responsibilities regarding withholding and remitting PAYE for its employees.

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    This document contains information about Mr. Moyo's employment income tax computation for Superstar Pvt Ltd and Telco Pvt Ltd. It provides details of Mr. Moyo's various employment benefits and income, and calculates his taxable income and tax payable. It also outlines Superstar Pvt Ltd's responsibilities regarding withholding and remitting PAYE for its employees.

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    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
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    26 views3 pages

    AC405 Assignment R185840R

    Uploaded by

    Diatomspinalcord
    This document contains information about Mr. Moyo's employment income tax computation for Superstar Pvt Ltd and Telco Pvt Ltd. It provides details of Mr. Moyo's various employment benefits and income, and calculates his taxable income and tax payable. It also outlines Superstar Pvt Ltd's responsibilities regarding withholding and remitting PAYE for its employees.

    Copyright:

    © All Rights Reserved
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    Flag for inappropriate content
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    of 3

    The University Of Zimbabwe

    Name : Allan-wolf Shayanewako


    Reg Number : R185840R
    Program : HACCO ( 4.1)
    Course : Tax Law and Practice (AC 405)
    Lecturer : Dr Muzira

    1|Page R185840R
    Part a
    Mr Moyo : Employment Income tax computation
    ZWL$
    Superstar Pvt Ltd
    Cash salary (150 000×12 ¿ 1 800 000
    Pension contributions paid by Superstar – 3rd Schedule -
    Interest free loan 150 000×12 [ 2 %+5 % ] −sec 8 126 000
    Loan portion no longer repayable (150 000
    ×12 ×0.50 ¿ of the loanamount sec 8 900 000
    Motoring benefit 108 000
    Passage benefit (USD$7 000
    × 0.70× ZWL $ 82−interbank rate ¿ ¿ the extend amount expended for private use 401 800
    Business seminar – exempt ( not taxable) -

    Entertainment : Used to entertain business clients (20 000×12 ×0.40 ¿ -


    Used for private purposes ( 20 000×12 ×0.60 ) 144 000
    Medical aid contributions : Company contributions –exempt 3rd schedule -

    Telco pvt Ltd


    Motor vehicle acquisition benefit(250 000-150 000) since Moyo is below the 100 000
    age of 55
    Cash in lieu of Leave – sec 8 300 000
    Gratuity – sec 8 500 000

    Deductions
    ICAZ joining fee –capital in nature therefore not deductible (not gross income ) -
    Annual subscription –sec 15 (35 000)
    Own pension contributions 6%×1 800 000 - exceeds maximum allowable (54 000)
    Taxable income 4 290 800
    Tax on sliding scale
    (4 290 800× 0.4−56 250 ¿ 1 660 070
    Gross tax 1 660 070
    Less : Tax credits
    Medical expenses ( 230 000× 0.30 )×50 % (34 500)
    1 625 570
    Add: Aids Levy (3% ×1 625 570 ¿ 48 767
    1 674 337
    Less :PAYE 650 000
    Tax payable 1 024 337

    2|Page R185840R
    Part b
    The responsibilities of Superstar Pvt Limited in respect of employment income is as follows ,
     Superstar is required to register with ZIMRA if it has employees earning more than $5
    000 per month
     Required to withhold PAYE from employees remuneration
     Remit the PAYE withheld to ZIMRA by the 10th of the month following deduction
     Superstar is responsible for any under deductions as well as payment of PAYE
     Provide payment summaries to employees and lodge an annual report with the ZIMRA
    after the end of each income year.
     To keep records and to furnish returns

    Note : November 2020 – Interbank rate [ 1USD equivalent to ZWL$82 ]

    References
    1. Income Tax Act Chapter 23:06
    2. Finance Act
    3. www.zimra.co.zw
    4. www.rbz.co.zw

    3|Page R185840R

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