how much tax to pay?

poliasha18 · 08-22-2011, 05:19 AM

How much would a person earning 30,001 pay in taxes if we use this table

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First #8358;30,000 5%
Next #8358;30,000 10%
Next #8358;50,000 15%
Next #8358;50,000 20%
Over #8358;160,000 25%

No tax is payable on annual income of N30,000 or less

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poliasha18 · 08-22-2011, 05:21 AM

For me this table seems confusing.
But this is what is written in official documents of the country.

What do they mean by " First"?

Please help,

student_of_law · 08-22-2011, 05:44 PM

<blockquote id="quote">quote<hr height="1" noshade id="quote">Originally posted by poliasha18
 For me this table seems confusing.
But this is what is written in official documents of the country.

What do they mean by " First"?

Please help,

<hr height="1" noshade id="quote"></blockquote id="quote">

Would you tell to which country this table relates?

As far as I understand it means

If you see the last entry it says, over 160,000. And if you calculate the total of earlier slabs (30k + 30k+ 50k+ 50k), it also amounts to 160,000

So it says that first 30,000 units of a person's earning shall be taxed at the rate of 5%

if the income exceeds 30,000 the exceeding portion will be taxed at 10%

if the income exceeds 60,000, the exceeding portion shall be taxed at 15%............. and so on

further illustration is

if a person has a taxable income of 200,000, we will break it as follows

30,000 + 30,000 + 50,000 + 50,000 + 40,000

For first 30,000 @ 5% = 1500

For next 30,000 @ 10% = 3000

for next 50,000 @ 15% = 7500

for next 50,000 @ 20% = 10,000

for next 40,000 @ 25% = 10,000

Total tax payable is
1500 + 3000 + 7500 + 10000 + 10,000 =