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Common filing mistakes
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The correct way to file |
| 1 |
Declaration of Partner's Income as Employment / Sole-proprietorship Income in Form B/B1
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A partner who is self-employed should report his share of profit/loss and remuneration (salary, bonus, CPF, and other benefits) from the partnership in the 'Trade, Business, Profession, or Vocation' section and 'Partnership' sub-section in his income tax return.
When e-Filing:
Declare the income as 'partner's salary, bonus & CPF' under item 3 'Trade, Business, Profession or Vocation'>>> 'Partnership'
When Paper Filing:
- Form B: Complete item 1b(4) on Page 2
- Form B1: Complete item 3 ('Other Income') on Page 2 and item 1 'Trade, Business, Profession, or Vocation' on Appendix 1.
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| 2 |
A partner not declaring his share of partnership income in the Form B; or declaring an estimated partnership income as he does not know his share of the Partnership income |
He should obtain his share of the partnership income from the precedent partner and declare it in his Form B.
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| 3 |
A partner not filing his Form B as the precedent partner has submitted the Form P on behalf of the partnership |
He is required to file his Form B to declare his share of the partnership income and income from other sources, if any. |
| 4 |
A partner declaring his Partnership Rent income as Other Income |
He should declare his Partnership Rent income in the 'Partnership' section.
When e-Filing:
Declare the income as ‘Partner’s Other Income' under item 3 'Trade, Business, Profession or Vocation' >>> 'Partnership'.
When Paper Filing:
• Form B: Complete item 1b(7) on Page 2.
• Form B1: Complete item 3 ('Other Income') on Page 2 and item 1 'Trade, Business, Profession or Vocation' on Appendix 1.
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| 5 |
For precedent partner: Declaration of Partnership income (Form P)
Salary, bonus and CPF paid to partners are claimed under 'Allowable Business Expenses'
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Partners’ salary, bonus, CPF are not to be included under Allowable Business Expenses. The precedent partner should enter it under the column: Partner's salary, Bonus & CPF.
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| 6 |
For precedent partner:
Not filing the Form P as the partners have all sent in their respective Form B
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The Precedent Partner is still required to file the Form P to declare the partnership income. |
| 7 |
Claiming the amount contributed last year as a self-employed person in the Form B to qualify for Self-Employed CPF Relief |
CPF relief for a self-employed person is automatically allowed based on information from CPF Board. You need not indicate your claim in Form B.
Self-employed CPF relief is allowed if :
- you have declared trade income
- you are making the contribution as a self-employed person
- your contribution was made before 31 Dec of the preceding year
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