Who is the precedent partner
The precedent partner is the partner who, among all the partners present in Singapore, is the first named in the partnership agreement. If there is no partnership agreement, the precedent partner is a partner who is agreed upon and appointed by the other partners to be the precedent partner.
Responsibilities of the precedent partner
The responsibilities of the precedent partner include the following:
- To file Form P by the due date for filing.
- To inform all the partners of their share of income from the partnership. The partners will each have to declare their share of income in their respective Individual Income Tax Returns.
- To lodge, on behalf of the other partners, any objection to the adjusted profit of the partnership computed by IRAS.
- To inform IRAS of any change of partners
- To give one month's written notice to IRAS if any partner:
- ceases or is about to cease being a partner and is likely to be chargeable to tax in Singapore; or
- is leaving or intending to leave Singapore for any period exceeding 3 months and is likely to be chargeable to tax in Singapore.
In the written notice, please provide the name of the partner, his new address and the expected date of cessation. You would also have to seek the Comptroller's permission to release whatever moneys due or payable to the parnter from the partnership.
As an administrative concession, with effect from 27/11/2012, the partnership does not have to give one month's written notice to IRAS or withhold income due to the ceasing/departing partner if the partner:
a) Is a Singapore citizen or
b) Is a Singapore Permanent Resident and is not leaving Singapore permanently.
Useful Information about filing the Form P
When do I have to file the Form P?
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The deadline for filing Form P is 15 April. If you e-File, you have up to 18 April to do so.
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If I did not receive the Form P, does it mean that I do not have to file?
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The partnership has to file Form P as long it has done any business in that year. If you do not receive the Form P by mid-March, please call our Income Tax helpline at 1800-356 8300 to request for the Form P. We will post the Form P to the precedent partner when we receive your request.
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If the partnership incurred losses or if there is no business done, do I have to file Form P?
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The partnership has to file the Form P if it has received the paper Form P or invitation to e-File, even if the partnership incurred losses or there is no business done in the preceding year.
If the partnership has no business activity in the preceding year and you are submitting the paper tax form, please cross the box in the 'Declaration' section at the bottom of page 1 of Form P.
If you e-File the Form P, please select the status as “No Business Activity” at the Selection Page.
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Issue of Form P
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For an existing partnership
You should receive the Form P by mid-March. If you do not receive it by then, please call our Income Tax helpline at 1800-356 8300 to request for the Form P. We will post the Form P 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 Income Tax helpline at 1800-356 8300 to request the form to be faxed to you.
We will post the Form P to the precedent partner after we receive your completed registration form.
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Informing IRAS about changes in partnership particulars
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If your business is registered with ACRA
Changes to the partnership particulars (for example, registered address, partnership name and business status) are to be lodged with the Accounting and Corporate Regulatory Authority (ACRA) via www.bizfile.gov.sg.
IRAS will automatically update the changes based on the information lodged with ACRA on a regular basis. There is no need to inform IRAS if you have already updated changes to the partnership business with ACRA.
If your business is not registered with ACRA
If changes to the partnership particulars are not lodged with ACRA or the partnership is not registered with ACRA / Ministry of Trade and Industry you may update us on the change when you file your Form P.
If you are submitting the paper tax form, 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.
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If there is a change in the composition of partners during the year
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You have to complete item 1 and/or item 2 on page 1 of the Form P to report the particulars of new / withdrawn partners.
You also have to declare the 4-line statement for the different periods involved in that year.
In page 2 of the Form P, please declare the 4-line statement for one of the periods and in pages 3 and 4, show the partners' allocation of profit/loss for that period.
Please attach additional sheets to declare the 4-line statement and the partners' allocation of profit/loss for the other periods involved in that year
If the annual business revenue is $500,000 or more, you must also submit the certified statement of accounts for the different periods concerned.
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If there is a change in the status of partners
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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 operations of the business while sleeping partners contribute capital to the business but do not take part in the operations of the business. Both acting and sleeping partners will be taxed on their share of partnership income.
However the sleeping partner will not be entitled to Earned Income Relief on the share of the partnership income.
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If the revenue of the partnership is $500,000 or more
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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:
o Trading and Profit and Loss Account; and
o Balance Sheet
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If the partners received foreign-sourced income through the partnership
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Foreign-sourced income received by resident individuals through a partnership in Singapore is subject to tax, unless the income is specifically tax exempt.
The foreign-sourced income must be reported in the Form P.
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Submitting the Form P via e-Filing
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You may use our e-Service to file your Partnership Income Tax Return. |
If there is a change of precedent partner
The new precedent partner must write in to us, giving us his full name, address and the date that he became the precedent partner.
FAQs
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 your individual income tax returns.
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 Income Tax helpline at 1800-356 8300.
- Step 1: Select Language option
- Step 2: For Return Status and Assessment Matters, press "2"
- Step 3: 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 where you would have to report the income of the partnership on behalf of the other partners.
You would also receive a Form B to report your individual income from all sources, including your share of partnership profit/loss.