Income Tax Calculation
Posted: Mon Dec 09, 2013 7:25 pm
Hello All
I need help to create a income tax calculation for Dominican Republic,
For example an employee with a monthly wage, greater than RD$30,000 (pesos) applies to this calculation.
I am going to take a formal example.
Wage = 37,500 (Monthly)
Deduction (AFP & SFS) = 5.73%
Wage - Deduction = 35,351.25
Taxable amount is = 35,351.25
In DR the tax table is the following:
from 0 to 349,326.00 (exempt)
from 349,326.01 to 523,988.00 = 15% from the surplus of 349,326.01
from 523,988.01 to 727,761.00 = 26,199.00 + 20% from the surplus of 523,988.01
from 727.761.01 and hereafter = 66,954.00 + 25% from the surplus of 727,761.01
To know the surplus I just have to do the calculation :
Surplus / 12 - taxable_amount (Divide by 12 months)
349,326.01 / 12 = 29,110.50
The previous taxable amount
(35,351.25 - 29,110.50) = 6,240.75
So with this data I know that the tax that I need to pay is 15% based on calculation ranges from above.
Total Income tax is = 6,240.75 * 15% = $RD936.11.
How can I achieve this into timetrex?.
Thank you in advance and sorry for the extensibility of my post.
I need help to create a income tax calculation for Dominican Republic,
For example an employee with a monthly wage, greater than RD$30,000 (pesos) applies to this calculation.
I am going to take a formal example.
Wage = 37,500 (Monthly)
Deduction (AFP & SFS) = 5.73%
Wage - Deduction = 35,351.25
Taxable amount is = 35,351.25
In DR the tax table is the following:
from 0 to 349,326.00 (exempt)
from 349,326.01 to 523,988.00 = 15% from the surplus of 349,326.01
from 523,988.01 to 727,761.00 = 26,199.00 + 20% from the surplus of 523,988.01
from 727.761.01 and hereafter = 66,954.00 + 25% from the surplus of 727,761.01
To know the surplus I just have to do the calculation :
Surplus / 12 - taxable_amount (Divide by 12 months)
349,326.01 / 12 = 29,110.50
The previous taxable amount
(35,351.25 - 29,110.50) = 6,240.75
So with this data I know that the tax that I need to pay is 15% based on calculation ranges from above.
Total Income tax is = 6,240.75 * 15% = $RD936.11.
How can I achieve this into timetrex?.
Thank you in advance and sorry for the extensibility of my post.