1 Nidal worked as General Manager of GoldenWings Company for 18 years that ended atthe end of 2019, with a monthly salary of6000 dinars. Nidal received the end-of-service gratuity on December 31, 2019 for hisyears of service in the company. The companypays an end-of-service gratuity equivalent toa month's salary for each year of the first fiveyears of service, and an end-of-servicegratuity equivalent to a month and a half'ssalary for each year of the five years ofservice. An end-of-service gratuity equivalentto two months' salary is paid for each of thefollowing years of service, except for the lastyear (2019 AD), for which the company doesnot pay an end-of-service gratuity. Based onthe previous data, the income tax payable onNidal's end of service gratuity is_60,000 dinars_27000 dinars5400 dinars_33,000 dinars_None of the above

It is assumed that the case is of UAE . Nidal is UAE resident. In UAE…

Answered: nqs | bartleby

Business

Accounting

nqs

Individual Income Taxes

43rd Edition

ISBN:9780357109731

Author:Hoffman

Publisher:Hoffman

Chapter4: Gross Income: Concepts And Inclusions

Section: Chapter Questions

Problem 32P

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Question

Nidal worked as General Manager of Golden
Wings Company for 18 years that ended at
the end of 2019, with a monthly salary of
6000 dinars. Nidal received the end-of-
service gratuity on December 31, 2019 for his
years of service in the company. The company
pays an end-of-service gratuity equivalent to
a month's salary for each year of the first five
years of service, and an end-of-service
gratuity equivalent to a month and a half's
salary for each year of the five years of
service. An end-of-service gratuity equivalent
to two months' salary is paid for each of the
following years of service, except for the last
year (2019 AD), for which the company does
not pay an end-of-service gratuity. Based on
the previous data, the income tax payable on
Nidal's end of service gratuity is
_60,000 dinars
_27000 dinars
5400 dinars
_33,000 dinars
_None of the above

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