Vhembe Limited manufactures and sells lawnmowers online to the public. The company produced a profit before...
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Vhembe Limited manufactures and sells lawnmowers online to the public. The company produced a profit before tax of R3 800 000 for the year ended 28 February 2021. Included in the profit before tax are the following items: • Dividend income of R200 000 which is exempt from income tax • Donations of R100 000 which is non-deductible The income tax rate for the financial year is 30% and there was no temporary difference observed. Required: Calculate current income tax for the year ended 28 February 2021. Vhembe Limited manufactures and sells lawnmowers online to the public. The company produced a profit before tax of R3 800 000 for the year ended 28 February 2021. Included in the profit before tax are the following items: • Dividend income of R200 000 which is exempt from income tax • Donations of R100 000 which is non-deductible The income tax rate for the financial year is 30% and there was no temporary difference observed. Required: Calculate current income tax for the year ended 28 February 2021.
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