Tue | Jun 15, 2021

Show me your payslip - Impact of proposed tax reforms

Published:Sunday | April 8, 2012 | 12:00 AM
  • JOB TITLE: CONSTABLE (MALE)

Current salary: $89,000 per month
Gross income per annum $1,068,000

Payroll taxes currently (Income tax, education tax, NIS, NHT): $217,678

Payroll taxes under proposed reform: $200,940
Net pay currently per annum: $699,864
Net pay under tax reform: $724,860
Net GCT/income tax benefit from proposed reform: $37,780
  • JOB TITLE: COSTING INVENTORY SUPERVISOR

Current salary: $114.384 per month
Gross income per annum: $1,372, 604.76
Payroll taxes currently: $306,013.38
Payroll taxes under proposed reform: $306,324.45
Net pay currently per annum: $839,982.19
Net pay under tax reform: $835,449.12
Net GCT/income tax benefit from proposed reform: $13,829
  • JOB TITLE: HOUSEHOLD HELPER

Gross income per annum: $577,500 per year
Net pay currently: $577,500 per year
Net pay under tax reform: $577,500
Net GCT/income tax benefit from proposed reform: $8,582

Tax on income is not taken into account for the household helper. However, the tax benefit would come from savings on the cost of basic food items and other categories.