Vhembe Limited manufactures and sells lawnmowers online to the public. The company produced a profit before tax of R3 800 000 for the year ended 28 February 2021. Included in the profit before tax are the following items: * Dividend income of R200 000 which is exempt from income tax * Donations of R100 000 which is non-deductible The income tax rate for the financial year is 30% and there was no temporary difference observed. Required: Calculate current income tax for the year ended 28 February 2021.
Vhembe Limited manufactures and sells lawnmowers online to the public. The company produced a profit before tax of R3 800 000 for the year ended 28 February 2021. Included in the profit before tax are the following items: * Dividend income of R200 000 which is exempt from income tax * Donations of R100 000 which is non-deductible The income tax rate for the financial year is 30% and there was no temporary difference observed. Required: Calculate current income tax for the year ended 28 February 2021.
Chapter14: Taxes On The Financial Statements
Section: Chapter Questions
Problem 25P
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Vhembe Limited manufactures and sells lawnmowers online to the public. The company produced a profit before tax of R3 800 000 for the year ended 28 February 2021.
Included in the profit before tax are the following items:
* Dividend income of R200 000 which is exempt from income tax
* Donations of R100 000 which is non-deductible
The income tax rate for the financial year is 30% and there was no temporary difference observed.
Required:
Calculate current income tax for the year ended 28 February 2021.
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