Excel

Excel Skills
Skills || Income
Income Tax
Tax Calculation
Calculation Template
Template
About
About this
this template
template
This
This template
template enables
enables usersusers to to perform
perform income
income tax tax calculations
calculations based
based on
on multiple
multiple tax
tax brackets
brackets (also(also referred
referred toto as
as
template design incorporates six default tax brackets, but you can add additional tax brackets
template design incorporates six default tax brackets, but you can add additional tax brackets if required. All the income if required. All the income
and
and user
user input
input is is limited
limited toto defining
defining the the appropriate
appropriate tax tax bracket
bracket values
values and
and income
income taxtax percentages.
percentages.
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calculation template.
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ple
ple tax
tax brackets
brackets (also
(also referred
referred to
to as
as aa sliding
sliding income
income scale).
scale). The
The
xx brackets
brackets if required. All the income tax calculations are automated
if required. All the income tax calculations are automated
ax
ax percentages.
percentages.

ware
ware solutions
solutions than
than regular
regular Excel
Excel templates.
templates. Most
Most Excel
Excel templates
templates
eports
eports based
based on on limited
limited user
user input.
input. You
You also
also don't
don't need
need advanced
advanced
input
input and
and include
include comprehensive
comprehensive step
step by
by step
step instructions.
instructions.

ve
ve created
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this sample
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and
emplate -- the
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Excel Skills | Income Tax Calculation Template
Instructions
www.excel-skills.com

This template enables users to perform income tax calculations based on multiple tax brackets (also referred to as a
sliding income scale). The template design incorporates six default tax brackets, but you can add additional tax brackets if On
Onthis
this sheet:
sheet:
required. All the income tax calculations are automated and user input is limited to defining the appropriate tax bracket This
This sheet
sheet includes
includes detailed
detailed
values and income tax percentages. instructions
instructions on
on setting
setting up
up and
and using
using
this
this template.
template.
The template includes two sheets:
TaxCalc - this sheet contains the income tax brackets and enable users to perform income tax calculations by simply
entering the appropriate monthly remuneration amount and specifying the appropriate rebates and medical aid deduction
amounts.
Monthly - this sheet enables users to perform monthly income tax calculations based on variable monthly remuneration
amounts and also takes medical aid deductions into account in the calculation of the appropriate monthly income tax
amounts. This is the only
protected sheet in the
Tax Brackets Setup full version of the
template!
Our default tax bracket setup provides for six tax brackets in the cell range from cell A3 to cell E9. All the cells with a light
blue cell background contain formulas and the cells with a light yellow cell background require user input.

If the six default tax brackets are sufficient for your income tax calculations, all you need to do is to enter the appropriate
tax bracket values in column B and the appropriate income tax percentages that relate to each tax bracket in column C.
The other cells in the tax bracket cell range will be updated automatically and the income tax calculation from row 19 to 21
will automatically be calculated from the values that you've entered.

If you require more than six income tax brackets for your calculation, simply insert the required number of additional rows
anywhere between row 4 and 9. Then copy the formulas from one of the existing cells in columns A, D and E (the cells with
the light blue cell background) in order to update the tax bracket formulas. After entering the appropriate tax bracket values
and income tax percentages, your tax bracket setup will be adjusted and will now consists of more than six tax brackets.
The income tax calculations are also automatically updated.

Users also need to specify the total rebates amount in cell B11. This amount is deducted after calculating the income tax
that is applicable to the specified remuneration amount and also has the effect of reducing the effective income tax rate.

Medical aid deductions have also been added to the template. In order to calculate the correct monthly & annual medical
aid deductions, you need to specify the number of dependents and the medical aid deduction rates that are applicable to
the tax payer & first dependent and the additional dependents. These deductions are deducted from the monthly & annual
income tax amounts because the medical aid deductions should be deducted for pay-as-you-earn (PAYE) purposes.

Income Tax Calculation

The only user input that is required in order to perform an income tax calculation is to specify a gross monthly
remuneration amount in cell B21. The annual remuneration, annual income tax, monthly income tax, medical aid
deductions, net income tax, annual & monthly net remuneration and the effective income tax percentage are all calculated
based on the amount that is specified in this cell.

Monthly Income Tax Calculations

The Monthly sheet contains a monthly income tax calculation that can be performed by simply entering the appropriate
gross monthly remuneration amounts in column B. You can also specify a Start Date in cell B3 in order to change the
month end periods in column A.

Page 3 of 6
Excel Skills | Income Tax Calculation Template
Instructions
www.excel-skills.com

An annual gross pay equivalent, the cumulative income tax amount and monthly income tax amount are calculated based
on the monthly remuneration amounts that are entered in column B. The medical aid deductions are calculated based on On
Onthis
this sheet:
sheet:
the number of dependents which is specified in column F and the medical aid deduction rates that are specified on the This
This sheet
sheet includes
includes detailed
detailed
TaxCalc sheet. instructions
instructions on
on setting
setting up
up and
and using
using
this
this template.
template.
The calculations on this sheet are especially useful if the monthly remuneration is variable and enables the user to
calculate the monthly income tax that needs to be deducted under these circumstances.

Help & Customization

If you experience any difficulty while using this template and you are not able to find the appropriate guidance in these
instructions, please e-mail us at support@excel-skills.com for assistance. This template has been designed with flexibility
in mind to ensure that it can be used in most business environments. If however you need an Excel based template that is
customized specifically for your business requirements, please e-mail our Support function and provide a brief explanation
of your requirements.

Copyright

This template remains the intellectual property of www.excel-skills.com and is protected by international copyright laws.
Any publication or distribution of this template outside the scope of the permitted use of the template is expressly
prohibited. In terms of the permitted use of this template, only the distribution of the template to persons within the same
organisation as the registered user or persons outside the organisation who can reasonably be expected to require access
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template by parties outside of the organisation is however expressly prohibited and represents an infringement of
international copyright laws.

Page 4 of 6
Income Tax Calculator
www.excel-skills.com
Income Tax Brackets Tax Bracket Value Tax Rate Equivalent Value Effective Rate
From 0 to 181,900 181,900 18.0% 32,742 18.0%
From 181,900 to 284,100 284,100 26.0% 59,314 20.9%
From 284,100 to 393,200 393,200 31.0% 93,135 23.7%
From 393,200 to 550,100 550,100 36.0% 149,619 27.2%
From 550,100 to 701,300 701,300 39.0% 208,587 29.7%
From 701,300 and above 41.0%

Total Rebates 13,257

On
Onthis
thissheet:
sheet:
Define
Define the
the appropriate
appropriate tax
tax brackets,
brackets, enter
enter the
the total
total rebates
rebates amount,
amount, enter
enter
Medical Aid:
the
the number
number ofof medical
medical aid
aid dependents,
dependents, specify
specify thethe appropriate
appropriate medical
medical aid
aid
Number of Dependents 5 deduction
deduction rates
rates and
and then
then simply
simply specify
specify the
the appropriate
appropriate gross
gross monthly
monthly
Medical Aid Tax Credits: remuneration
remuneration in
in order
order to
to calculate
calculate the
the annual
annual andand monthly
monthly income
income tax
tax
Tax payer & first dependent 270 amounts.
amounts.
Additional dependents 181

Gross Remuneration Income Tax Medical Aid Net Income Tax Net Remuneration Income Tax %

Annual Remuneration 480,000 111,126 -12,996 98,130 381,870 20.4%

Monthly Remuneration 40,000 9,261 -1,083 8,178 31,823 20.4%
Monthly Income Tax Calculation
www.excel-skills.com
Start Date 3/1/2015
Medical Aid
Monthly Cumulative Income Monthly Income Number of Medical Aid Net Monthly
Month Annual Equivalent
Remuneration Tax Tax Dependents Deduction Income Tax
March-2015 40,000 480,000 9,261 9,260.50 4 -902.00 8,358.50
April-2015 40,000 480,000 18,521 9,260.50 4 -902.00 8,358.50
May-2015 60,000 560,000 35,056 16,534.75 4 -902.00 15,632.75
June-2015 40,000 540,000 44,242 9,186.25 4 -902.00 8,284.25
July-2015 40,000 528,000 53,503 9,260.50 4 -902.00 8,358.50
August-2015 65,000 570,000 72,062 18,559.00 4 -902.00 17,657.00
September-2015 40,000 557,143 81,147 9,085.25 5 -1,083.00 8,002.25
October-2015 40,000 547,500 90,284 9,137.25 5 -1,083.00 8,054.25
November-2015 70,000 580,000 111,017 20,733.25 5 -1,083.00 19,650.25
December-2015 40,000 570,000 120,103 9,085.25 5 -1,083.00 8,002.25
January-2016 40,000 561,818 129,188 9,085.25 5 -1,083.00 8,002.25
February-2016 65,000 580,000 148,023 18,835.25 5 -1,083.00 17,752.25

On
Onthis
thissheet:
sheet:
Enter
Enter the
the appropriate
appropriate gross
gross monthly
monthly remuneration
remuneration amounts
amounts and
and the
the number
number of of
medical
medical aid
aid dependents
dependents in in order
order to
to calculate
calculate the
the month
month income
income tax
tax amounts.
amounts. TheThe start
start
date
date can
can bebe edited
edited to
to adjust
adjust the
the monthly
monthly periods.
periods. The
The calculations
calculations on
on this
this sheet
sheet
accommodate variable monthly remuneration
accommodate variable monthly remuneration amounts. amounts.