While a partnership does not pay tax, it still has to file an annual income tax return to show all income earned by the partnership and deductions claimed for expenses incurred in carrying on the partnership business.
The income tax return to report partnership income is called Form P.
As the precedent partner, you are required to file the Form P in respect of the partnership. If you have received a paper tax form or letter from IRAS inviting you to e-File, you will have to file the tax return even if there was no business done in the preceding year.
Issue of Form P
- For an existing partnership
You should receive Form P by mid-March. If you have not received it, please call our Business Income Tax Help-line at 1800-356 8300 to request for the tax return. We will post the tax return to the precedent partner when we receive your request.
- For a new partnership
Please fill in the Registration Form for New Partnership (19KB). You may download this form or you may call our Business Income Tax Help-line at 1800-356 8300 to request the form to be sent to your fax number.
We will post Form P to the precedent partner when we receive your registration form.
- Change in partnership particulars
You have to complete item 1 and item 2 on page 1 of Form P to inform us of any changes in the partnership particulars.
You also have to report the 4-line statement for the different periods concerned showing clearly the various partners' allocation of profit/loss, and complete pages 3 and 4 of the Form P in respect of all the partners concerned for each relevant period. If the business revenue is $500,000 or more, you must also send in the certified statement of accounts for the different periods concerned.
- Status of partners
When filing Form P, you need to indicate the status of each partner as Acting or Sleeping. Acting partners are those who are involved in the daily management of the business while the Sleeping partners take no part in the conduct of the business. Both acting and sleeping partners will be taxed on their share of partnership income, however no Earned Income Relief is allowable on the share of partnership income for the sleeping partner.
- Submission of certified statement of accounts
You have to submit the certified statement of accounts of your business together with the Form P if the revenue of your business is $500,000 or more.
You need not submit the certified statement of accounts if the revenue of your business is less than $500,000. However, you must still prepare the accounts and keep proper records of your business transactions as we may call them for verification.
'Certified' means signed by you, indicating that the accounts are true and correct.
'Statement of accounts' comprises of:
- Trading and Profit and Loss Account; and
- Balance Sheet
- Foreign Sourced Income
Foreign-sourced income received by resident individuals through partnership in Singapore is subject to tax, unless they are specifically tax exempt.
Deadline for filing Form P
The deadline for filing Form P is 15 April.
Form P e-Filing
Our new e-Service to file your Partnership Income Tax Return.
FAQs
Yes. You have to file the Form P even if your partnership incurred losses or no business transactions were made.
If there is no business transaction made, you may indicate that by crossing the box in the 'Declaration' section at the bottom of page one of Form P.
With effect from the Year of Assessment (YA) 2005, Form P is required for husband-and-wife partnerships.
If you are the precedent partner, you have to complete Form P.
In addition, you and your spouse have to report your respective share of partnership profit/loss in the individual income tax return.
If you need an extension of time to file Form P, you must write to us before 31 March. You must give your reason, the estimated partnership income and the estimated share of profit/loss to be allocated to each partner.
You can check the status of your submission by calling the Business Income Tax Help-line.
- Step 1: Dial 1800-356 8300
- Step 2: Select Language option
- Step 3: For "Return Status and Assessment Matters", press "3"
- Step 4: For Return Status, press "1" and follow the instructions over the telephone
If you are the precedent partner of the partnership, you will receive Form P and you would have to report the income of the partnership on behalf of the other partners.
You will also receive a Form B to report your individual income for all sources. You have to report your share of partnership profit/loss and your income from other sources in Form B.