Explain what are the income amounts for this employee that are subject to personal income tax and for which this employee must pay tax? Explain how much personal income tax this employee must pay?

Personal income tax

Q1:

In one of the countries which impose a tax on personal income Employee annual salary 48 thousand dollars, in addition to the amount of 20 thousand dollars an annual rent of his private apartment. In addition to the fact that he had an amount in his bank account of 20 thousand dollars, he also sold his car for 30 thousand dollars, knowing that he had previously bought it for 27 thousand dollars. Also, won the horse racing competition at $ 4 per thousand dollars ,also has shares in a company worth 17 thousand dollars.

Note: The personal income tax is imposed at a rate of %7 annually on all sums that are subject to this tax.

Required:

1. Explain what are the income amounts for this employee that are subject to personal income tax and for which this employee must pay tax?

2. Explain how much personal income tax this employee must pay?