Accounting and Financial Control Department Taxation S19

Total annual Revenue:

A. Basic Salary: [Basic salary +Special Increment more than 5 years + periodic (annual) ###
raise if any].
B. Variable Wage:
 Representation allowance. ###
 Work nature allowance. ###
 Special increment( not added to the basic salary) ###
 Social increment. ### +
 Work necessities allowances (travel, transport, car, food, clothes and housing ###
allowances)
 Production incentives. ###
 Overtime wage. ###
 Rewards/Bonuses ###
 Grants ### ####
C. Share of workers from profits ###
D. Remunerations Received by members of BOD and Chairmen ###
E. In Fringe Benefits (In-Kind Benefits) ###
Total Annual Revenue (A+B+C+D+E) ###
Deducted from it:
1. Sums exempted by special law:
- Social increment. ###
- Special increment. (Whether added to the basic salary or not). ###
- Representation allowance in case the taxpayer works for a public sector. ###
2. Sums to meet actual expenses and related to the work:(work necessities allowances)
- Transport &Travel Allowance.
- Clothing allowance. ### _
- Car allowance. ###
- Food Allowance. ###
- Housing Allowance. ###
3.Personal Exemption: ###
4.Share of the employee in the social insurance:(14% of the basic salary+11% of the 700
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 Accounting and Financial Control Department Taxation S19

Variable salary) 0
Total Exemptions
Net Revenue (=Total Annual Revenue – Total Exemptions{1+2+3+4}) ### (###)
5.Life insurance Premiums and Special insurance fund subscription
6. Share of workers from profits:
### ###
Taxable net revenue(Tax Base)=[Net Revenue – Exemptions {5&6)] ###
###

Tutorial 2 - Chapter 2: Salaries & Like

Problem 1: Total Taxable Revenue

An employee works for a company of the public sector at a monthly salary of L.E. 800
(of which L.E. 150 special increment). In addition, he receives the following amounts:
 L.E. 120 per month as work nature allowance.
 L.E. 300 per month as representation allowance.
 L.E. 10 per month as social increment.
 L.E. 200 per month as a transport allowance.
 L.E. 5000 annually as overtime wage.
 L.E. 100 per month as special increment not added to basic salary.
 L.E 6000 a share of profits.
Required: Calculate the total taxable revenue for this employee during this year.

Problem 2: Inkind/ Infringe benefits

Ahmed Mahmoud works for a company in the private sector, whom he was given the,
following benefits during year 2018. Calculate the taxable in-kind benefits for the year
2018.

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 Accounting and Financial Control Department Taxation S19

1. An Opel was put under his full personal disposal, knowing that the amount of the fuel,
insurance, and periodic maintenance of the car during the year was L.E. 15,000.
2. He was given an I phone X. His annual bills were found to be L.E. 21,000.
3. He bought an insurance policy with a total monthly premium of L.E. 150; the premium
was totally borne by Ahmed’s employer.
4. He borrowed a loan from the company with a total value of L.E. 80,000 at an interest
rate of a)4%, b) 0%, c)7%
Total amounts obtained by Ahmed through the last 6 months prior receiving the loan were
L.E 30,000.

Problem 3: Total Taxable Revenue

An employee in the public sector receives the following per month: Basic salary of L.E.
600 (out of which L.E. 150 Special increment), housing allowance of L.E. 150, representation
allowance of L.E. 200, Overtime wage of L.E. 460; and annual production incentives of L. E.
300. He is also given a business car under his full disposal with annual maintenance costs
of L.E. 1000; and a business mobile phone with annual bills of L.E. 1800.
Required: Calculate total taxable revenue for this employee at year end.