Gr 12 Math Lit: Ch 1.2 Taxation

What is the total amount earned in a month, including salary, overtime, bonuses, etc. called?

Taxable Income
Net Salary
Deductions
Gross Salary (correct)

What is the purpose of UIF (Unemployment Insurance Fund) deductions?

To pay trade union fees
To fund medical expenses
To contribute to pension funds
To provide insurance against unemployment (correct)

What is the formula to calculate Net Salary?

Net Salary = Gross Salary - Deductions (correct)
Net Salary = Gross Salary + Deductions
Net Salary = Taxable Income + Deductions
Net Salary = Gross Income - Tax-Deductible Deductions

What is the correct order to calculate income tax?

Determine taxable income, then calculate income tax (D) Signup and view all the answers

What type of expenses do not reduce taxable income?

Non-Tax Deductible Expenses (B) Signup and view all the answers

What is the purpose of deduction tables?

To provide a quick reference for determining tax owed (A) Signup and view all the answers

What is Taxable Income?

Gross Income - Tax-Deductible Deductions (C) Signup and view all the answers

What is the difference between Tax-Deductible Deductions and Non-Tax Deductible Expenses?

Tax-Deductible Deductions reduce taxable income, while Non-Tax Deductible Expenses do not (C) Signup and view all the answers

What is the purpose of a tax bracket?

To charge a specific tax rate for a range of taxable incomes (C) Signup and view all the answers

What is the primary purpose of an IRP5 form?

To summarize total earnings and deductions (D) Signup and view all the answers

What is the result of calculating the taxable income?

The gross income minus tax-deductible deductions (A) Signup and view all the answers

What is the purpose of PAYE?

To ensure taxes are collected regularly throughout the year (D) Signup and view all the answers

What is the total UIF contribution?

2% of the gross salary (A) Signup and view all the answers

What is the tax threshold for individuals younger than 65?

R67,111 (C) Signup and view all the answers

What is the purpose of a tax rebate?

To decrease the tax payable (A) Signup and view all the answers

What is the primary rebate amount for individuals?

R12,080 (A) Signup and view all the answers

What is the purpose of calculating the net salary?

To determine the take-home pay after all deductions (C) Signup and view all the answers

What is the next step after calculating the taxable income?

Determine the tax bracket (B) Signup and view all the answers

What is the purpose of subtracting deductions from gross salary?

To determine net salary (D) Signup and view all the answers

What is the main difference between tax-deductible deductions and non-tax deductible expenses?

One reduces taxable income, and the other does not (A) Signup and view all the answers

What is the purpose of income tax formulas?

To calculate income tax in tax brackets (C) Signup and view all the answers

What type of income is subject to income tax?

All sources of income (C) Signup and view all the answers

What is the relationship between gross income and taxable income?

Taxable income is gross income minus tax-deductible deductions (D) Signup and view all the answers

What is the purpose of medical aid deductions?

To reduce taxable income (B) Signup and view all the answers

What type of deductions are loan repayments?

Taxable deductions (C) Signup and view all the answers

What is the result of calculating net salary?

Take-home pay (B) Signup and view all the answers

What is the purpose of using tax tables?

To identify the correct tax bracket for the taxable income (D) Signup and view all the answers

Which of the following is NOT a type of tax rebate?

Quaternary rebate (D) Signup and view all the answers

What is the tax threshold for individuals aged 65-75?

R104,611 (D) Signup and view all the answers

What is the purpose of deducting PAYE from an employee's salary?

To ensure that taxes are collected regularly throughout the year (C) Signup and view all the answers

What is the result of applying the tax bracket formula?

Annual tax (A) Signup and view all the answers

What is the purpose of calculating the annual tax?

To calculate the monthly tax (C) Signup and view all the answers

What is the relationship between the tax threshold and tax rebate?

Below the threshold, tax is cancelled by the rebate (B) Signup and view all the answers

What is the purpose of obtaining an IRP5 form from each employer?

To complete tax returns (A) Signup and view all the answers

What is the result of subtracting all deductions from the gross salary?

Net salary (C) Signup and view all the answers

What is the purpose of calculating the taxable income?

To identify the correct tax bracket (C) Signup and view all the answers

What is the primary purpose of calculating the taxable income?

To determine the amount of income tax owed (B) Signup and view all the answers

Which of the following deductions is NOT a tax-deductible expense?

Rent (D) Signup and view all the answers

What is the relationship between the gross income and taxable income?

Gross income is taxable income minus tax-deductible deductions (B) Signup and view all the answers

What is the purpose of using income tax formulas?

To calculate the income tax owed (D) Signup and view all the answers

What is the difference between a tax rebate and a tax threshold?

A tax rebate is a refund, while a tax threshold is the minimum taxable income (C) Signup and view all the answers

What is the primary purpose of deducting UIF from an employee's salary?

To provide unemployment benefits (B) Signup and view all the answers

What is the relationship between the net salary and gross salary?

Net salary is always less than gross salary (A) Signup and view all the answers

What is the purpose of using deduction tables?

To provide a quick reference for determining the amount of tax owed (D) Signup and view all the answers

What is the purpose of identifying the correct tax bracket?

To apply the correct tax rate to the taxable income (A) Signup and view all the answers

What is the result of deducting applicable rebates from the annual tax?

Net annual tax payable (B) Signup and view all the answers

What is the purpose of dividing the net annual tax payable by 12?

To find the monthly PAYE deduction (D) Signup and view all the answers

What is the effect of tax-deductible deductions on the gross salary?

Reduces the gross salary (C) Signup and view all the answers

What is the purpose of subtracting the total deductions from the gross salary?

To find the net salary (A) Signup and view all the answers

What is the relationship between the tax threshold and tax rebate?

The tax threshold determines the tax rebate (C) Signup and view all the answers

What is the purpose of using the SARS tax tables?

To identify the correct tax bracket and tax rate (C) Signup and view all the answers

What is the effect of a tax rebate on the annual tax payable?

Reduces the annual tax payable (C) Signup and view all the answers

What is the purpose of calculating the taxable income?

To identify the correct tax bracket and tax rate (C) Signup and view all the answers

What is the result of applying the PAYE system?

Regular tax deductions throughout the year (D) Signup and view all the answers

Gr 12 Math Lit: Ch 1.2 Taxation

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Questions and Answers

What is the total amount earned in a month, including salary, overtime, bonuses, etc. called?

What is the purpose of UIF (Unemployment Insurance Fund) deductions?

What is the formula to calculate Net Salary?

What is the correct order to calculate income tax?

What type of expenses do not reduce taxable income?

What is the purpose of deduction tables?

What is Taxable Income?

What is the difference between Tax-Deductible Deductions and Non-Tax Deductible Expenses?

What is the purpose of a tax bracket?

What is the primary purpose of an IRP5 form?

What is the result of calculating the taxable income?

What is the purpose of PAYE?

What is the total UIF contribution?

What is the tax threshold for individuals younger than 65?

What is the purpose of a tax rebate?

What is the primary rebate amount for individuals?

What is the purpose of calculating the net salary?

What is the next step after calculating the taxable income?

What is the purpose of subtracting deductions from gross salary?

What is the main difference between tax-deductible deductions and non-tax deductible expenses?

What is the purpose of income tax formulas?

What type of income is subject to income tax?

What is the relationship between gross income and taxable income?

What is the purpose of medical aid deductions?

What type of deductions are loan repayments?

What is the result of calculating net salary?

What is the purpose of using tax tables?

Which of the following is NOT a type of tax rebate?

What is the tax threshold for individuals aged 65-75?

What is the purpose of deducting PAYE from an employee's salary?

What is the result of applying the tax bracket formula?

What is the purpose of calculating the annual tax?

What is the relationship between the tax threshold and tax rebate?

What is the purpose of obtaining an IRP5 form from each employer?

What is the result of subtracting all deductions from the gross salary?

What is the purpose of calculating the taxable income?

What is the primary purpose of calculating the taxable income?

Which of the following deductions is NOT a tax-deductible expense?

What is the relationship between the gross income and taxable income?

What is the purpose of using income tax formulas?

What is the difference between a tax rebate and a tax threshold?

What is the primary purpose of deducting UIF from an employee's salary?

What is the relationship between the net salary and gross salary?

What is the purpose of using deduction tables?

What is the purpose of identifying the correct tax bracket?

What is the result of deducting applicable rebates from the annual tax?

What is the purpose of dividing the net annual tax payable by 12?

What is the effect of tax-deductible deductions on the gross salary?

What is the purpose of subtracting the total deductions from the gross salary?

What is the relationship between the tax threshold and tax rebate?

What is the purpose of using the SARS tax tables?

What is the effect of a tax rebate on the annual tax payable?

What is the purpose of calculating the taxable income?

What is the result of applying the PAYE system?

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