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Mr. Michael, a German national, was sent to Cambodia in April 2018 by a German company to be promoted to General Manager in a new branch in Phnom Penh. In June 2018, Mr. Michael was also offered a job at a parent company in Berlin, Germany, where he was paid $ 3,800 and was subject to a 20% tax. Anna, his wife, also moved to Cambodia. She has a job in Cambodia in the office of "CanadiCare" an International Organization. They came to live in an apartment and their two children are enrolled in an international school.Michaels remuneration in Cambodia for July 2011 comprised the following payments and benefits:

Salary .........................................................................................................$6,500

Bonus for successful assignment ..............................................................$300

Housing Allowance.................................................................................$.1,200

Medical insurance (provided to Mgt. only) ..............................................$700

Over time .. $500

Pension contribution .....................................................................$700

The childrens school fees ...............................................................$1,000

Compensation . $1,200

Michael also has the exclusive use of a Companys Car and

driver, which the Branch office rents at a monthly cost of .....$1,000

Michael also reimbursed another $1,500 in respect of expense

related to a three day business trip to Japan as following:

i. Hotel............................................................................$400

ii. Air Travel....................................................................$800

iii. Out of Pocket Expenses..............................................$300

1. Calculate both Tax on Salary and Fringe Benefit Tax with

Michael's salary in July 2018, taking into account the existence of some deductions.

2. Is Foreign Tax Credit allowed for Mr. Michael, how much did you take back?

3. Calculate Michael's payroll tax to be paid in July 2018 (ToS payable) upon his return to Cambodia.

Note: 1. Basic tax deduction:.

Wife as a housewife 150,000 R

One dependent child 150,000 R

2. $ 1 exchange rate = R4,000

3. The tax rate on additional benefits is 20%

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