Mathematical Literacy - Grade 12
Finance: Financial Documents
Lesson Objectives
- Understand different types of tax documents (e.g., IRP5, tax rate tables, PAYE).
- Interpret loan documents (e.g., bank statements, loan agreements, loan changes).
- Perform calculations related to income tax, loan repayments, and interest rates.
- Apply financial knowledge to real-life scenarios (e.g., reading payslips, calculating tax, and understa
1. TAX DOCUMENTS
Tax documents help individuals and businesses understand how much tax they need to pay. In
South Africa, tax is managed by SARS (South African Revenue Service), and there are different
types of taxes, including Personal Income Tax (PAYE), Company Tax, and Value-Added Tax (VAT).
1.3 PAYE (Pay-As-You-Earn) Calculation
Example: An employee earns R30 000 per month. How much income tax (PAYE) do they pay per
month?
1. Find annual salary: 30 000 12 = 360 000
2. Check the tax table:
- R360 000 falls in the bracket R237 101 - R370 500
- Tax formula: 42 678 + 26% of (360 000 - 237 100)
3. Calculate tax payable:
360 000 - 237 100 = 122 900
0.26 122 900 = 31 954
42 678 + 31 954 = 74 632
Annual tax payable = R74 632
4. Find monthly PAYE deduction:
74 632 12 = 6 219.33
The employees monthly PAYE is R6 219.33
2. LOAN DOCUMENTS
Loan documents are contracts that outline the details of a loan agreement between a borrower and
a lender.
Finance: Financial Documents
Lesson Objectives
- Understand different types of tax documents (e.g., IRP5, tax rate tables, PAYE).
- Interpret loan documents (e.g., bank statements, loan agreements, loan changes).
- Perform calculations related to income tax, loan repayments, and interest rates.
- Apply financial knowledge to real-life scenarios (e.g., reading payslips, calculating tax, and understa
1. TAX DOCUMENTS
Tax documents help individuals and businesses understand how much tax they need to pay. In
South Africa, tax is managed by SARS (South African Revenue Service), and there are different
types of taxes, including Personal Income Tax (PAYE), Company Tax, and Value-Added Tax (VAT).
1.3 PAYE (Pay-As-You-Earn) Calculation
Example: An employee earns R30 000 per month. How much income tax (PAYE) do they pay per
month?
1. Find annual salary: 30 000 12 = 360 000
2. Check the tax table:
- R360 000 falls in the bracket R237 101 - R370 500
- Tax formula: 42 678 + 26% of (360 000 - 237 100)
3. Calculate tax payable:
360 000 - 237 100 = 122 900
0.26 122 900 = 31 954
42 678 + 31 954 = 74 632
Annual tax payable = R74 632
4. Find monthly PAYE deduction:
74 632 12 = 6 219.33
The employees monthly PAYE is R6 219.33
2. LOAN DOCUMENTS
Loan documents are contracts that outline the details of a loan agreement between a borrower and
a lender.
