Mr Muuka was in employment in ABC Limited whilst renting out furnished apartments. His last payment, in December 2020, he received the following payment (excluding gratuity). (Zambia Taxes)

Salary K120,000

Bonus K112,000

Allowances K101,000

ABC Limited paid PAYE amounting to K35,000 and NAPSA K280.

Mr Muuka received income from his Investment in property amounting to K225,000 (net). He had occupied the apartment in January 2020 before being accommodated by the company.

The following were expenses incurred in 2020:

K

Cleaning 12,000

Debt Collection costs 17,500

Advertising 10,000

Repairs and Maintenance 12,500

Water and electricity 6,000

Interest on Mortgage to purchase the property 3,500

Accountancy fees 15,000

Insurance (Note 1) 48,000

NOTE 1, The Insurance of K48, 000 was paid on 1 June 2020. The insurance paid on 1 June, 2019 was K36,000

Required:

Calculate the tax payable by Mr Muuka for the tax year 2020.

Answer rating: 100% (QA)

K35000 K280 K35280 Explanation Th... View the full answer