Mr. Michael, a German national, was sent to Cambodia in April 2018 by a German company to be promoted to General Manager in a new branch in Phnom Penh. In June 2018, Mr. Michael was also offered a job at a parent company in Berlin, Germany, where he was paid $ 3,800 and was subject to a 20% tax. Anna, his wife, also moved to Cambodia. She has a job in Cambodia in the office of "CanadiCare" an International Organization. They came to live in an apartment and their two children are enrolled in an international school.Michaels remuneration in Cambodia for July 2011 comprised the following payments and benefits:
Salary .........................................................................................................$6,500
Bonus for successful assignment ..............................................................$300
Housing Allowance.................................................................................$.1,200
Medical insurance (provided to Mgt. only) ..............................................$700
Over time .. $500
Pension contribution .....................................................................$700
The childrens school fees ...............................................................$1,000
Compensation . $1,200
Michael also has the exclusive use of a Companys Car and
driver, which the Branch office rents at a monthly cost of .....$1,000
Michael also reimbursed another $1,500 in respect of expense
related to a three day business trip to Japan as following:
i. Hotel............................................................................$400
ii. Air Travel....................................................................$800
iii. Out of Pocket Expenses..............................................$300
1. Calculate both Tax on Salary and Fringe Benefit Tax with
Michael's salary in July 2018, taking into account the existence of some deductions.
2. Is Foreign Tax Credit allowed for Mr. Michael, how much did you take back?
3. Calculate Michael's payroll tax to be paid in July 2018 (ToS payable) upon his return to Cambodia.
Note: 1. Basic tax deduction:.
Wife as a housewife 150,000 R
One dependent child 150,000 R
2. $ 1 exchange rate = R4,000
3. The tax rate on additional benefits is 20%
