, QUESTION 1a: CALCULATION OF MR VUSI MASEMOLA’S TAX LIABILITY FOR THE 2026 YEAR
OF ASSESSMENT
PART 1: CALCULATION OF TAXABLE INCOME
Description Note Calculation / Details Amount (R) Reference / Reason
INCOME
Gross income – s 1, fully
Basic salary Given 720,000
taxable.
Seventh Schedule – par 9;
Accommodation fringe benefit 1 See working below 44,666 taxable value after
payments.
Not taxable – non-cash
Long-service award (silver Cost to employer:
2 - award with cost < R15,000
watch) R12,000
– s 10(1)(x).
Gross income –
Income from NPAA (contract
3 Given 300,000 independent contractor
work)
remuneration.
Rental income from investment
4 R15,000 × 10 months 150,000 Gross income – s 1.
property
GROSS INCOME 1,219,433
LESS: DEDUCTIONS
s 11(a) – expenditure
Rates, taxes, insurance,
Rental expenses 4 -31,500 incurred in production of
repairs, security, utilities
rental income.
OF ASSESSMENT
PART 1: CALCULATION OF TAXABLE INCOME
Description Note Calculation / Details Amount (R) Reference / Reason
INCOME
Gross income – s 1, fully
Basic salary Given 720,000
taxable.
Seventh Schedule – par 9;
Accommodation fringe benefit 1 See working below 44,666 taxable value after
payments.
Not taxable – non-cash
Long-service award (silver Cost to employer:
2 - award with cost < R15,000
watch) R12,000
– s 10(1)(x).
Gross income –
Income from NPAA (contract
3 Given 300,000 independent contractor
work)
remuneration.
Rental income from investment
4 R15,000 × 10 months 150,000 Gross income – s 1.
property
GROSS INCOME 1,219,433
LESS: DEDUCTIONS
s 11(a) – expenditure
Rates, taxes, insurance,
Rental expenses 4 -31,500 incurred in production of
repairs, security, utilities
rental income.
