Identifying the Precedent Partner
The precedent partner, among all the partners present in Singapore, is the first named partner 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.
Responsibilities of the Precedent Partner
The responsibilities of the precedent partner include the following:
- File Form P by the filing due date.
- Inform all the partners of their share of income from the partnership.
Individual partners have to each declare their share of income in their respective Individual Income Tax Returns.e-Filing of Form P will be available from 1 Feb. If a partnership e-Files the Form P by 28 Feb, 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 prefilled.
About a quarter of partnerships with more than 12,000 partners had e-filed their Form P in Feb last year and availed the pre-filling service to their partners.
- Lodge, on behalf off the other partners, any objection to the adjusted profit of the partnership computed by IRAS.
- Inform IRAS of any change of partners.
- 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.
Giving IRAS One Month's Written Notice
In the written notice, provide
- name of the partner;
- new address of the partner; and
- 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 Tax Clearance for Foreign & SPR Employees (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 outgoing 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||Original Filing Deadline|
|e-Filing||18 Apr 2021|
|Paper Filing||15 Apr 2021|
Methods of Filing
- e-File via myTax Portal
File Form P online via myTax Portal using your SingPass.
- 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 the preceding year even if you did not receive a notification from IRAS. Please contact us if you have not received Form P by January. We will post the Form P to the precedent partner and the precedent partner can then e-file the Form P.
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 notification to file Form P by January. If you do not receive it by then, please contact us. We will post the Form P to the precedent partner when we receive your request.
Notifying IRAS of Changes in Partnership
Businesses Registered with ACRA
Please visit ACRA website at www.bizfile.gov.sg
Businesses Not Registered with ACRA
For changes to the partnership particulars not lodged with ACRA or partnerships not registered with ACRA / Ministry of Trade and Industry, the precedent partner should update IRAS with details of the changes when filing the Form P.
Notifying IRAS of Changes in Composition of Partners
- Report the particulars of new / withdrawn partners in Form P.
- 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.
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.
With effect from Year of Assessment 2021, you can submit the statement of accounts as an attachment when you e-file your Form P. NEW
'Certified' means signed by you, indicating that the accounts are true and correct. 'Statement of accounts' comprises:
- 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, if not specifically tax exempted, must be reported in the Form P.
My spouse and I have registered a partnership. Is the Form P still required? How do I declare my income if I am in a partnership with my spouse?
Form P is required for husband-and-wife partnerships. Whoever is the precedent partner must complete and file Form P.
In addition, you and your spouse have to report your respective share of partnership profit/loss in your individual income tax returns.
How do I request for an extension of time to file Form P?
You must write to us before 31 March to request for an extension. You must give your reason, the estimated partnership income and the estimated share of profit/loss to be allocated to each partner.
After submitting Form P, how do I check if IRAS has received it?
You can check the status of your submission by calling the Income Tax helpline at 1800-356 8300.
Why do I receive a Form P and a Form B? Do I have to complete both?
Precedent partners receive Form P and are required 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.