Question

Question 1A [20] The following table shows the tax brackets of the Namibian individual and trust income tax. Annual Income (N$) base rate % Tax 0-50 000 N$ 0 Exempt 50 001 - 100 000 N$ 0 18% of the amount exceeding N$ 50 000 100 001 - 300 000 N$ 9000 + 25% of the amount exceeding N$ 100 000 300 001 - 500 000 N$ 59 000 + 28% of the amount exceeding N$ 300 000 500 001 - 800 000 N$ 115 000 + 30% of the amount exceeding N$ 500 000 800 001 - 1500 000 N$ 205 000 + 32% of the amount exceeding N$ 800 000 Over 1500 001 N$ 429 000 + 37% of the amount exceeding N$ 1500 000 (a) Using a while loop write a MATLAB program that calculate the annual tax payable by any individual in Namibia, save it as an m.file under the name Tax.m (10) (b) Using the program in (a), calculate the tax payable by individuals with the following incomes (i) income = N$ 220 000, [2 (ii) income = N$ 750 000, with allowable deductions of N$ 65 000, 2 (iii) income N$ 1 750 000, with allowable deductions of N$ 450 000.

Answer 1

Matlab Code:

clear all;
clc;

%case1
AnnualIncomeCase1=220000;
TexDeductionCase1=0;
TexCase1=Tex(AnnualIncomeCase1,TexDeductionCase1);
disp("Total tex for case 1:");
disp(TexCase1);

% case2
AnnualIncomeCase2=750000;
TexDeductionCase2=65000;
TexCase2=Tex(AnnualIncomeCase2,TexDeductionCase2);
disp("Total tex for case 2:");
disp(TexCase2);

% case3
AnnualIncomeCase3=1750000;
TexDeductionCase3=450000;
TexCase3=Tex(AnnualIncomeCase3,TexDeductionCase3);
disp("Total tex for case 3:");
disp(TexCase3);

% save as Tex.m
function TotalTex=Tex(AnnualIncome,TexDeduction)
if (AnnualIncome>1500001)
BaseTex=429000;
ExtraTex=(AnnualIncome-1500000)*(37/100);
  
elseif(AnnualIncome>800001)
BaseTex=205000;
ExtraTex=(AnnualIncome-800000)*(32/100);
  
elseif(AnnualIncome>500001)
BaseTex=115000;
ExtraTex=(AnnualIncome-500000)*(30/100);
  
elseif(AnnualIncome>300001)
BaseTex=59000;
ExtraTex=(AnnualIncome-300000)*(28/100);
  
elseif(AnnualIncome>100001)
BaseTex=9000;
ExtraTex=(AnnualIncome-100000)*(25/100);

elseif(AnnualIncome>50001)
BaseTex=0;
ExtraTex=(AnnualIncome-50000)*(18/100);
  
else
BaseTex=0;
ExtraTex=0;
  
end

TotalTex=BaseTex+ExtraTex-TexDeduction;
end

Matlab Output:

Total tex for case 1:   39000

Total tex for case 2:   125000

Total tex for case 3:  71500