TEE EEE EEE EEE : EEE EEE EEERERERRRRRR RRR PEER ERERRR RRR BRQuarter - : Three quarters - : Two thirds - : UiipAeS — price of 1 item (per and each). Dozen mean - 12 eggs. FRGIAAUAl — multiply by 12 Find monthly — divide by 12 Find difference — you subtract (minus) Find the sum — you add. Findit@tal - you add, if big (multiply) @- you multiply numbers Given a percentage % and number = multiply both to find the value. Question asking VAT use these ratios (15%, 115%, 100%) Probability — Start from Fraction, decimal or percentage. Probabiliy = rr Answers always take THREE digits and ROUNDED OFF 2 DIGITS unless stated otherwise. Ratio — example (5000: 1500) always simplify your ratio by diving the numbers on the calculator and get a fraction change it to ratio. Eg (6000: 1500) will be % which is 10:3. Unit ratio — ( 1: something) old negative it a percentage decrease.* Find the increase in two numbers (you subtract). © To prove how many times something over another- you divide the values given. prove that the income is more than an expense by 45. You must get an income, then get an expense. (You will always do TWO calculation). Lastly you subtract the two answers. Identify — give a name Write/State — Bhala (awubali) Calculate/Determine — Uyabala. Explain/Describe — Chaza List/Name — usho igama. How many — number How long — time but depends on the question sometimes. Show that — answers must be the same exactly. Show _if_or _whether(verify) — answers may not be the same. Then you conclude. Conclusion, use words used on the question. VAT — Value Added Tax UIF - Insurance Fund GEPF - Employee Pension Fund Unemployment Government PAYE - Pay as you earn SARS — South African Revenue Services BMI - Body Mass Index ATM — Auto Teller Machine EFT - Electronic Fund TransferTAXATION STEPS TO CALCULATE THE INCOME TAX OF A PERSON. 1. Gross annual (yearly) income. Multiply by 12. 2. Subtract (pension and donations) Taxable income = Annual Income - tax deductible income . Choose the correct tax bracket using step 2. . Subtract the rebate. 3. 4 5. Subtract medical aid 6. Annual Tax 7. . monthly tax, divide by 12. e It is a compulsory contribution to government income, charged on the workers’ income and business profits, or added to some goods, services, and transactions. e Value added Tax (VAT) ¢ Personal income tax. ¢ To provide funds for government programmes, e.g to provide public goods and services like healthcare; schools; roads, hospitals, social grants etc.Who pays tax? e VAT is paid by everyone who buys goods or pays for services rendered, however some goods are exempted from tax e.g., Fresh fruit; brown bread etc. e Personal income tax is only paid by individuals who earn above a certain amount of money (as determined by the government from one year to the next) e Some products or services may not be taxed. This means that there is no VAT charge for them otherwise referred to as VAT exempted (zero rated goods). « Supply of donated goods by a charitable organisation. e Some basic food items e.g Fresh fruit; brown bread etc. VAT (Value added Tax) . VAT is a tax charged at 15% on most goods and services, as well as on the importation of good and services into South Africa: e VAT is currently calculated at 15% of the value of the goods/services. ° VAT inclusive means price with Vat added - 115% . VAT exclusive means price with NO Vat - 100%.UIF- UNEMPLOYMENT INSURANCE FUND. UIF stands for “Unemployment Insurance Fund”. It serves as a form of insurance, if YOU LOSE YOUR JOB) dismissed or retrenched. « You DO NOT get UIF when you retire or resigned. The employee (1%) and the employer 1% combined being 2% which goes to the SARS department. « The UIF ceiling price of people who earns more than 17 742 is R177,12 (4%). 1% must be take on the gross (all incomes) income of an employee. ¢ Do not calculate UIF on commissions (sales made). e It is the employer's responsibility to make sure that their employees are registered for UIF. « An employee must work for more than 24 hours a month to qualify to pay UIF. « Unemployment benefit « Sickness benefit « Maternity benefitPension fund. (GEPF) « Government Employees have GEPF while Private Sector has a Provident Fund,_7,5% (basic Salary) is contributed towards a pension fund. ¢ Itshould be multiplied by 12 to give the annual contribution. * Pension is NOT deducted on bonus. You get it when you RETIRE. INCOME TAX e Every person in South Africa who is employed and earns a certain minimum amount, has to pay tax on his or her income. The tax on income is calculated as a percentage of the income. e This amount is paid to the South African Revenue Services (SARS) and can be deducted from taxpayer's salary every month (PAYE)= Pay as You Earn IMPORTANT THINGS TO KNOW. . Gross income = The sum of all earnings (basic salary, travel allowance, housing) before any deductions have been made. Monthly gross x 12 to get annual. + Tax deductible 1) Pension fund, 2)Donation — maximum amount allowed for tax deduction is R102 909« Persons earning more than the tax threshold are liable to pay tax. Anyone who earns less than this amount does not have to pay tax. This amount is determined by the government every year. UGS bya) Below age 65 _R83 100 _Age 65 to below 75 R128 650 _ Age 75 and older _R143 850 Example: A person who is 60 years old and earns less than R83 100 does not have to pay tax. Check the threshold by the taxable income. It is the relief/refund individuals who pay tax get according to their age. Rebates are fixed amounts deducted (taken off) from your annual tax payable.* If rebates increase (do not add them) * Ifthe rebates decrease (add them). « To prove the rebate values, you multiply threshold by 18%. « For a secondary rebate (secondary threshold - primary) x 18%. « Fora tertiary rebate (tertiary threshold - secondary) x 18%. « Medical tax rebates are received by the main member (The person who pays the medical aid). « The medical tax credit allocated for the first dependent equals that of the main_member(most cases) every member thereafter has the same different medical tax credit. You as member included. e It must be annual meaning you multiply by 12. . Inflation is an increase in the price of a variety of goods and services over time and different times have different inflations rates. e Inflation is usually measured as an annual percentage increase. « To find the new price — use ratio.HIRE PURCHASE AGREEMENT « Most people don't have the cash up front to purchase items such as TVs, fridges, coaches etc., so they buy them on a hire purchase agreement. « A hire purchase agreement is therefore a financial agreement between the shop and the customer about how the customer will pay for the desired product. ¢ The interest on a hire purchase loan is always charged ata simple interest rate and only charged on the amount owing after paying the deposit. « The total loan amount is then divided into monthly payments over the period of the loan. Payment period is usually 12, 24, 36, 48, 60, and 72 months.« Use SI = PIN * Table method « Use the initial amount to} Use the current amount generate interest. to generate interest. * Good on loans * Bad on loans ¢ Bad on investments * Good on investments. TERMINOLOGY “+ Investment — money placed on the bank or organisation. “+ Loan — money borrowed from the bank or loan shark. + Interest — the amount charged on a loan or investment. + Interest rate — is the percentage rate of interest that would be charged on the loan or investment. + Principal — original or initial amount. “+ p.a - per annum — year. In compound interest, interest can be compounded: * @ Daily (divide by 30) « @ Monthly (divide by 12) « @ Quarterly (divide by 4) ¢ @ Half yearly/bi annually/semi-annual ( by 2) ¢ @ Annually/yearly (use as it is) ¢ Total = Interest + original ¢ Interest = Total — original amount * Original = total — interestExample 4: Calculate the total amount of money to be received after a year, if R5000 was invested at R5000 compounded at 8% per annum. 8B ny 12months _ Year | Month Principal | Interest Total 1/3 5000 =x 5000 = 100 | 100 + 5000 = 5100 100 6 5100 5100 = 102 | 102 + 5100 = 5202 100 9 5202 | 2 cog9 104.04 + 5202 = 100 5306.04 = 104.04 12 5306.04 | _2 106.12 + 5306,04 = = x 5306.04 : 100 = 106.12 Eas money inrenest Compound Simple interest Interest © Straight line graph Simple Interest © Curve graph