Tax rates and allowances the following tax rates and allowances and social security hereinafter: zus

Please calculate monthly CIT (19%) according to the rules of tax accounting, if the company conducted the following operations (gross prices):

1. 
   purchase of a Xerox machine with a purchase value of PLN 14,000 (depreciation rate – 25%),
   
2. 
   purchase of a passenger car with a purchase value of PLN 400,000 (depreciation rate – 20%),
   
3. 
   purchase of a passenger car with a purchase value of PLN 50,000 (depreciation rate – 20%),
   
4. 
   monthly salary payment for 4 workers in amount of PLN 5,000,
   
5. 
   trainings payment – PLN 4,000,
   
6. 
   year taxes payment – PLN 8,000,
   
7. 
   IT services payment – PLN 2,000,
   
8. 
   mortgage payment – PLN 15,000,
   
9. 
   gastronomic service payment – PLN 3,960,
   
10. 
    received an invoice for fuel for passenger car – PLN 9,000,
    
11. 
    received an invoice for law services – PLN 20,000,
    
12. 
    purchase of paper – PLN 500,
    
13. 
    purchase of fuel for 4 trucks – PLN 30,000,
    
14. 
    received an invoice for delivery service – PLN 9.000,
    
15. 
    usage of paper – PLN 400,
    
16. 
    received an invoice for Electricity – PLN 16.000,
    
17. 
    accrued bonuses for employees (4 workers) - PLN 5,000 each,
    
18. 
    received a payment for the sale of goods – PLN 500,000,
    
19. 
    received invoice for parking a passenger’s car – PLN 1,000,
    
20. 
    paid costs of loan – PLN 2,000.
    

TAX RATES AND ALLOWANCES

The following tax rates and allowances and social security (hereinafter: ZUS) rates for 2018 are to be used in answering the questions.

Social security contributions (ZUS) Employer Employee

Total 20·48% 13·71%

Insurance

Retirement pension 9·76% 9·76%

Disability pension 6·50% 1·50%

Sickness benefit – 2·45%

Accident benefit 1·67% –

Work fund 2·45% –

Polish fund of guaranteed to workers benefits 0·10% –

Total 20·48% 13·71%

Personal income tax (PIT) Tax amounts to

Up to PLN 85,528 18% of the base minus tax free allowance

PLN 85,528 and above 15,395.04 + 32% of the amount in excess of 85,528 PLN minus amount reducing the tax (tax free allowance)

Annual costs – 1,335 PLN

Tax-free allowance

To 8,000 PLN – 1,440 PLN

From 8,000 PLN to 13,000 PLN – 1,440 PLN minus 883.98 PLN × (basis for tax assessment – 8,000 PLN) ÷ 5,000 PLN

From 13,001 PLN to 85,528 PLN, the tax reduction amount is 556.02 PLN.

From 85,529 PLN to 127,000 PLN – 556.02 PLN less 556.02 PLN × (basis of calculation of tax - PLN 85,528 PLN) ÷ 41,472.

Over 127,000 PLN - no allowance