Calculating Income Tax from Profit Before Tax

What is the income tax amount if profit before tax is R15,700,000 and the tax rate is 30%?

The income tax, we need to multiply the profit before tax by the tax rate.

To calculate the income tax, we need to multiply the profit before tax by the tax rate. The tax rate is given as 30%, which is equivalent to 0.30.

So, income tax = Profit before tax * Tax rate

= R15,700,000 * 0.30

Performing the calculation, we find:

Income tax = R4,710,000

The correct answer is option C: R4,710,000.

When the tax rate was 40%, the income tax amount would be R6,280,000.