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 onon multiple
multiple tax
tax brackets
brackets (also(also referred
referred toto as
as aa s
template
template design incorporates seven tax brackets, but you can add additional tax brackets if required. All the income tax
design incorporates seven tax brackets, but you can add additional tax brackets if required. All the income tax c
and user input is limited to defining the appropriate tax bracket values and
and user input is limited to defining the appropriate tax bracket values and income tax percentages.income tax percentages.
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enable editing & click here
ple
ple tax
tax brackets
brackets (also
(also referred
referred to
to as
as aa sliding
sliding income
income scale).
scale). The
The
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 onon 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.
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ve
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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 seven default tax brackets, but you can add additional tax On
Onthis
this sheet:
sheet:
brackets if required. All the income tax calculations are automated and user input is limited to defining the appropriate tax This
This sheet
sheet includes
includes detailed
detailed
bracket 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
This isis the
the only
only
protected
protected sheet
sheet inin the
the
Tax Brackets Setup full
full version
version of of the
the
template!
template!
Our tax bracket setup provides for seven tax brackets in the cell range from cell A3 to cell E10. 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 seven 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 20 to 22 will automatically be calculated from the values that you've entered.

If you require more than seven 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
seven tax brackets. The income tax calculations are also automatically updated.

Users also need to specify the total rebates amount in cell B12. 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 B22. 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.

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to the template as a direct result of the use of the template by the registered user is allowed. Subsequent distribution of the
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 189,880 189,880 18.0% 34,178 18.0%
From 189,880 to 296,540 296,540 26.0% 61,910 20.9%
From 296,540 to 410,460 410,460 31.0% 97,225 23.7%
From 410,460 to 555,600 555,600 36.0% 149,476 26.9%
From 555,600 to 708,310 708,310 39.0% 209,033 29.5%
From 708,310 to 1,500,000 1,500,000 41.0% 533,625 35.6%
From 1,500,000 and above 45.0%

Total Rebates 13,635

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 rates and then simply specify the appropriate gross
deduction rates and then simply specify the appropriate gross monthly monthly
Medical Aid Tax Credits: remuneration in order to calculate the annual and monthly income
remuneration in order to calculate the annual and monthly income tax tax
Tax payer & first dependent 303 amounts.
amounts.
Additional dependents 204

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

Annual Remuneration 600,000 153,157 -14,616 138,541 461,459 23.1%

Monthly Remuneration 50,000 12,763 -1,218 11,545 38,455 23.1%
Monthly Income Tax Calculation
www.excel-skills.com
Start Date 3/1/2017
Medical Aid
Monthly Cumulative Income Monthly Income Number of Medical Aid Net Monthly
Month Annual Equivalent
Remuneration Tax Tax Dependents Deduction Income Tax
March-2017 40,000 480,000 9,052 9,052.05 4 -1,014.00 8,038.05
April-2017 40,000 480,000 18,104 9,052.05 4 -1,014.00 8,038.05
May-2017 60,000 560,000 34,389 16,285.05 4 -1,014.00 15,271.05
June-2017 40,000 540,000 43,408 9,019.05 4 -1,014.00 8,005.05
July-2017 40,000 528,000 52,460 9,052.05 4 -1,014.00 8,038.05
August-2017 65,000 570,000 70,728 18,268.05 4 -1,014.00 17,254.05
September-2017 40,000 557,143 79,591 8,863.05 5 -1,218.00 7,645.05
October-2017 40,000 547,500 88,616 9,025.05 5 -1,218.00 7,807.05
November-2017 70,000 580,000 109,017 20,401.05 5 -1,218.00 19,183.05
December-2017 40,000 570,000 117,881 8,863.05 5 -1,218.00 7,645.05
January-2018 40,000 561,818 126,744 8,863.05 5 -1,218.00 7,645.05
February-2018 65,000 580,000 145,357 18,613.05 5 -1,218.00 17,395.05

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.