Identifying 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:
- File Form P by the due date for filing.
- Inform all the partners of their share of income from the partnership.
The partners each have to declare their share of income in their respective Individual Income Tax Returns.*
New! *For Year of Assessment 2017, e-Filing of Form P will be available from 1 Feb 2017. If a partnership e-Files the Form P by 26 Feb 2017, the partnership allocation will be pre-filled in the respective partners' Form B/B1. With this pre-filling initiative, the precedent partner need not separately inform the respective partners of their share of the partnership income and the individual partners can enjoy the convenience of having their tax return pre-filled.
3. Lodge, on behalf of the other partners, any objection to the adjusted profit of the partnership computed by IRAS.
4. Inform IRAS of any change of partners.
5. To give one month's written notice to IRAS if any partner
a. Ceases or is about to cease being a partner and is likely to be chargeable to tax in Singapore; or
b. Is leaving or intending to leave Singapore for any period exceeding 3 months and is likely to be chargeable to tax in Singapore.
Giving IRAS One Month's Written Notice
In the written notice, provide
- name of the partner;
- new address of the partner;
- the expected date of cessation.
You should also seek the Comptroller's permission to release whatever moneys due or payable to the partner from the partnership. Do not file Form IR21 as this is the process for tax clearance for employees.
As an administrative concession, effective 27 Nov 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 is a:
- Singapore citizen; or
- Singapore Permanent Resident and is not leaving Singapore permanently.
Filing Form P
The precedent partner files Form P on behalf of the partnership.
|Mode of Filing||Filing Deadline|
|Paper Filing||15 Apr|
Methods of Filing
a. e-File via myTax Portal
File Form P online via myTaxPortal using your SingPass or IRAS PIN.
b. Paper Filing
Obligation to File Form P
The partnership has to file Form P as long as
- the partnership has done business in that year; or
- the partnership received a notification to file.
When the partnership has done business in that year
You must file Form P when the partnership has done business in that year even if you did not receive a notification from IRAS. Please call our Income Tax helpline at 1800-356 8300 to request for the Form P if you have not received Form P by mid-March. We will post the Form P to the precedent partner when we receive your request.
When the partnership has not done any business in that year
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 did not do any business in the preceding year.
Please select the status as "No Business Activity" at the Selection Page.
- Paper Filing
Please cross the box in the 'Declaration' section at the bottom of page 1 of Form P.
When the partnership has incurred losses
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 in the preceding year.
Obtaining Form P
You should receive the Form P by January. 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.
Notifying IRAS of Changes in Partnership
Businesses Registered with ACRAwww.bizfile.gov.sg
Businesses Not Registered with ACRA
Changes to the partnership particulars not lodged with ACRA or partnerships not registered with ACRA / Ministry of Trade and Industry, should update IRAS 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.
Notifying IRAS of Changes in Composition of Partners
- Complete item 1 and/or item 2 on page 1 of the Form P to report the particulars of new / withdrawn partners.
- Declare the 4-line statement for the different periods involved in that year. In page 2 of the Form P, 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.
- Attach additional sheets to declare the 4-line statement and the partners' allocation of profit/loss for the other periods involved in that year.
- Submit the certified statement of accounts for the different periods concerned if the annual business revenue is $500,000 or more.
When there is a change of the precedent partner, the new precedent partner must write in to IRAS and provide to IRAS (a) his full name (b) address and (c) the date that he became the precedent partner.
Notifying IRAS of Changes in 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 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.
Submitting Certified Statements of Accounts
You are required 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.
'Certified' means signed by you, indicating that the accounts are true and correct. 'Statement of accounts' comprises:
- Trading and Profit and Loss Account; and
- Balance Sheet
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.
Reporting Foreign-Sourced Income in Form P
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.