Where to Report Business Income | Sole-proprietors should enter their income under "Sole-Proprietorship" > "Trade, Business, Profession or Vocation". | The precedent partner should file Form P and inform the partners of their share of the business income. Thereafter, each partner should enter their share of business income into their Form B/B1 when filing their individual tax returns as income under "Partnership" > "Trade, Business, Profession or Vocation". e-Filing of Form P will be available from 1 Feb. If a partnership e-Files the Form P by 28 Feb 2021, 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. | The individual partner should enter their share of the business income under "Partnership" > "Trade, Business, Profession or Vocation".
However, if the precedent partner of the partnership e-Files the Form P by 28 Feb 2021, the partnership allocation will be pre-filled in the respective partners' Form B/B1. |
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How Business Income is Taxed | Business income is taxable at individual personal income tax rates. | Partnership income is only taxed in the hands of the individual partner at his personal income tax rates. | The share of profit or loss allocated to each partner will be taxed under each individual partner's name at his personal income tax rates. |
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