National Municipal
Taxation Taxation
FIM FIM
CALCULATION OF TAXABLE EARNED INCOME
Salary 220,000 220,000
Deductions
Trade union membership fee ( 2,000) ( 2,000)
Travel expenses exceeding FIM 2,000 ( 1,000) ( 1,000)
Standard deduction ( 2,100) ( 2,100)
Child care deductions ( 8,400) ( 10,500)
Employment pension premium and
unemployment pension premium* ( 7,040) ( 7,040)
( 20,540) ( 22,640)
199,460 197,360
CALCULATION OF TAX ON EARNED INCOME
National income tax on FIM 154,000 24,550
FIM 45,460 at 33% 15,001
FIM 199,460 39,551
Municipal tax on FIM 197,360 at 16% 31,577
Church tax on FIM 197,360 at 1% 1,973 39,551
33,550
* FIM 220,000 (0.03 + 0.002) = FIM 7,040
CALCULATION OF TAXABLE INVESTMENT INCOME
Capital gain 30,000
Rental income 28,000 58,000
Deductions
Expenses on rental property ( 14,000)
Interest expense
Rental property ( 14,000)
Housing interest ( 40,000) ( 68,000)
Loss ( 10,000)
Tax credit for excess interest expense
FIM 10,000 x 0.25 2,500
National income tax 39,551
Tax credit ( 2,500)
National income tax payable 37,051
The content of this article is intended to provide a general information on the subject matter. It is therefore not a substitute for specialist advice.
