Wei Mun, who is $55$ years old and single, earns an annual income of $\$50\,800$. He contributes

Question

Wei Mun, who is $55$ years old and single, earns an annual income of $\$50\,800$. He contributes $\$8200$ to the Central Provident Fund (CPF) and claims parents’ relief of $\$5500$. Calculate his income tax payable according to the tax rates given below. Age Earned Income Relief Below $55$\$$\allowbreak 1000$ $55$ to $59$\$$\allowbreak 6000$ $60$ and above\$$\allowbreak 8000$ Chargeable income ($\$$)Rates ($\%$)Gross Tax Payable ($\$$) First Next $20000$ $10000$ $0$ $2$ $0$ $200$ First Next $30000$ $10000$ $3.50$ $200$ $350$ First Next $40000$ $40000$ $7$ $550$ $2800$ First Next $80000$ $40000$ $11.5$ $3350$ $4600$ First Next $120000$ $40000$ $15$ $7950$ $6000$ First Next $160000$ $40000$ $18$ $13950$ $7200$ First Next $200000$ $40000$ $19$ $21150$ $7600$ First Next $240000$ $40000$ $19.5$ $28750$ $7800$ First Next $280000$ $40000$ $20$ $36550$ $8000$ First Next $320000$ $40000$ $22$ $44550$

Accepted Answer

$\$238.50$

Age	Earned Income Relief
Below \(55\)	\$\(\allowbreak 1000\)
\(55\) to \(59\)	\$\(\allowbreak 6000\)
\(60\) and above	\$\(\allowbreak 8000\)

IP1U8 8.3.6 Worked Example 1

IP1U8 8.3.6 Worked Example 1

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