Page 99 - Accountancy_F5

Example 3.6
Mrs. Sima Amboni is an employee working with Nondo Traders as an accountant.
Her basic salary is TZS 1,800,000, per month. During March 2024, she requested
and was given a salary advance of TZS 350,000 to enable her cover emergency
family issues. Mrs. Amboni is also entitled to the following taxable allowances:
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(a) Housing allowance TZS 100,000 per month;
(b) Meal allowance of TZS 8,000 per day; and
(c) Transport allowance TZS 10,000 per day;
(d) Average working days per month is 22 days.

During March 2024, Mrs. Amboni worked for extra four (4) days – the Saturdays,
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which are paid at an agreed extra duty allowance rate of TZS 30,000 per day. She also
contributes 2.5 per cent of the gross salary for development levy, 10 per cent of basic
salary for NSSF, and 8 per cent of basic salary for Health insurance fund.
PAYE tax is payable as:

Monthly income (TZS) Tax rate
Salary up to 300,000 NIL

Salary above 300,000 up to 1,100,000 10% of the amount in excess of TZS 300,000

Salary above 1,100,000 TZS 80,000 plus 15% of the amount in ex-
cess of TZS 1,100,000
Required: Determine Mrs. Sima Amboni’s net pay for March 2024

Student’s Book Form Five
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