A messanger earns N2640 per year and pays tax at the rate of 10k on a Naira. How much tax does he pay in a year

Answer 1

To calculate the amount of tax the messenger pays in a year, we first need to determine how much of his income is taxable.

The messenger earns N2640 per year, and the tax rate is 10k on a Naira. This means that for every N10,000 earned, N1,000 must be paid in tax.

To find out how much tax the messenger pays, we first determine how many 10k Naira increments are in N2640:

N2640 / N10,000 = 0.264 10k increments

Since the messenger earns less than N10,000, he will only pay tax on the portion of his income that is taxable. This means he will pay tax on the full amount of his income.

Now we calculate the tax the messenger pays:

0.264 x N1,000 = N264

Therefore, the messenger pays N264 in tax per year.