Section TWO:

Q1, For a natural person whose annual taxable income is L.E 20000, the tax
due is L.E ……….

Answer:

First Second Third Fourth Fifth Sixth Seventh

15,000 15,000 15,000 15,000 140,000 200,000 200,000
0% 2.5%
Exempted (the Rest)
0 = 125

Therefore:
If taxable income is: L.E 20,000
First: L.E 15000 exempted (no tax)
Second: L.E 5000 subjected to tax by rate 2.5%.
Tax amount = 5000 × 2.5% = 125
Tax due = Tax amount – any paid before taxes
= 125 – 0
= 125

Q2, If the total net annual income (Taxable income) of a natural person (i.e.
taxpayer) was L.E 390,000. Then the tax due on this taxpayer income will
be……………….

Answer

T. net annual income of a natural 390,000

person (taxable income)
- Exempted bracket for (15,000)
minimum cost of living
= Tax base = 375,000

First Second Third Fourth Fifth Sixth Seventh

15,000 15,000 15,000 15,000 140,000 200,000 200,000
0% 2.5% 10% 15% 20% 22.5% 25%
Exempted Rest:190,000
0 = 375 1500 2,250 28,000 42,750

Therefore:
Tax Amount: 375+ 1500+ 2,250+ 28,000+ 42,750=74,875
Tax due= tax amount- any taxes paid before
= 74,875-0=74,875

Q3. If the total net annual income (Taxable income) of a natural person (A
taxpayer) was L.E 9000, Then the tax due on this taxpayer income will be:

Zero

Q4.Solve the following problem and choose the correct answer, The following
data were provided for a resident Egyptian Doctor for year 2021:

1. He works as a consultant physician in a company. His net annual income from

the company after all deductions and personal exemption was L.E 60,000.
2. He owns a private hospital, its total accrued revenues for the year were L.E
50,000 while its total accrued expenses for the year were L.E 32,000.
3.He owns a private clinic, its cash revenues during the year were L.E 30,000
while its actual paid expenses for the year were L.E 20,000.
4.He owns a building consists of 3 floors rented according to the provisions of the
Civil Code. His total annual revenues from this building were L.E 16,000.

Qs, 1. Net annual taxable income (loss) from commercial and industrial
activities
(a., 50,000 b, 32,000, c, 18,000 d. 60,000)

Answer C

2. Net annual taxable income (loss) from non-commercial or industrial activities

(Cash basis)

(a. 30,000, b. 10,000, c. 20,000, d. ZERO)

Answer b

2.Net annual taxable income from real estate wealth is:

(a. 48,000 b, 24,000 c, 16,000 d, 8000)
Answer D

3.The tax due to be paid by this accountant for year 2020 is:
(a. 81,000 b, 11,325 c. Zero d, 96,000)

Answer:B

Answer
Unified Annual tax return for a natural person
1.Net annual taxable income from salaries and the like 60,000
2.Net annual taxable income (loss) from commercial or
industrial activities (Accrual basis)
Total Accrued revenues- Total accrued expenses
50,000- 32,000= 18,000
Net annual taxable income (loss) from non-commercial or
industrial activities (Cash basis)
Total cash revenues- Total cash expenses
30,000-20,000= 10,000
Net annual taxable income (loss) from real estate wealth
t. annual revenues from real estate wealth x 50% only=
16,000 x 50% 8,000
T. Net annual taxable income of natural person 96,000
first bracket exemption of min. cost of living (15,000)
Tax base 81,000

First Second Third Fourth Fifth Sixth Seventh

15,000 15,000 15,000 15,000 140,000 200,000 200,000
0% 2.5% 10% 15% 20% 22.5% 25%
Exempted Rest:36,000
0 = 375 1500 2,250 7,200

Then, the tax amount = 375 + 1500 + 2250 + 7,200 = 11,325

Tax due= tax amount- any paid before taxes

Tax due = 11,325 - 0= 11,325

Q5. The following data are provided for Ahmed a resident Egyptian
Engineer during year 2022:

1. He works as an engineer in a company. His net annual income from the

company after all deductions and personal exemption was L.E 100,000. Noting
that the company deducted L.E 500 as monthly tax on salaries and the like.
2.He has a sole proprietorship working in the field of construction, its total
revenues were L.E 80,000 (including L.E 20,000 received in advance for
operations planned to be carried out during the coming year), while its total
expenses for the year were L.E 70,000 (of which L.E 12,000 still outstanding not
paid yet).
3. He owns a private engineering office, its cash revenues for the year were L.E
45,000 (in addition to another L.E 35,000 still due), its total expenses were L.E
20,000 (of which L.E 5,000 will be paid in the coming year). Noting that the
withheld at source tax was L.E 700.
4.He owns a building consists of 7 apartments rented during the year as furnished
units. His monthly revenue from each apartment was L.E 2,000.

Choose
1. Net annual taxable income (loss) from commercial and industrial activities
is:
(A. 10000 B. (20000) C. (10000) D. None of the
above
Answer C

2.The engineer tax base

(a, 189,000 b, 26,225 c, 204,000 d. 155,000)

Answer : a

3.The tax amount for year 2020 is

( a, 23,000, b, 32,925, c. 189,000 d, 26,225)

Answer : B

4. The tax due to be paid by this engineer for year 2020 is:
(a. 189,000 b, 32,925 c, 20, 363 d, 26,225)
Answer : D
Answer
Unified Annual tax return for a natural person
1.Net annual taxable income from salaries and the like 100,000
2.Net annual taxable income (loss) from commercial or
industrial activities (Accrual basis)
Total Accrued revenues- Total accrued expenses
60,000- 70,000= (10,000)
1. Net annual taxable income (loss) from non-commercial or
industrial activities (Cash basis)
Total cash revenues- Total cash expenses
45,000-15,000= 30,000
Net annual taxable income (loss) from real estate wealth

Revenues from a building rented as furnished units

(7 apartments × 2000 × 12 months) = 168,000

Total annual revenues from real estate wealth × 50% only
168,000 × 50%
84,000
T. Net annual taxable income of natural person 204,000
first bracket exemption of min. cost of living (15,000)
Tax base 189,000

First Second Third Fourth Fifth Sixth Seventh

15,000 15,000 15,000 15,000 140,000 200,000 200,000
0% 2.5% 10% 15% 20% 22.5% 25%
Exempted Rest:144,000
0 = 375 1500 2,250 28,800

Then, The tax amount = 375 + 1500 + 2250 + 28,800 = 32,925

Tax due= tax amount – any taxes paid before
Tax due= 32,925- (500 x 12 + 700)
Tax due = 32,925- (6000 + 700) =
Tax due = 32,925- 6,700= 26,225