Income Tax For Partnerships
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Partners in a partnership are considered "self-employed" – i.e. you do not pay yourself any wages. The business income is treated as part of your total personal income and taxed at personal income tax rates.
This guide is not meant to be a comprehensive guide on income tax. It only covers the tax obligations of partners.
The Basics
Tax Rates & Exemptions
Deductions, Relief & Rebates
Medisave & Income Tax
Filing Your Tax Return
Payment Of Taxes
Where Can I Get Help?
The Basics
Taxable Income
- Any income that is "accrued" or received in Singapore by a person or business is subject to income tax.
- In essence, it means that if your customer pays you for a product in Singapore or you receive money from your overseas sales in Singapore, the money is subject to tax.
- Taxable income includes income from your business, salary from employment, interest earned on your deposits and rental income.
Capital Gains
- Capital gains are not subject to tax.
- For instance, if you buy and sell shares at a profit, the profit is not subject to tax. However, the dividends that you earn from the shares are income and subject to tax.
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Tax Rates & Exemptions
- As your business income forms part of your personal income, the two are calculated together when you file your tax returns.
- Your business income is reported separately (Form B or B1) and added to all your other personal income. The total is then subject to personal income taxes.
- The tax rates for Year of Assessment 2005 are shown in the table below. Taxes are charged progressively (0% - 22%) on your chargeable income. The chargeable income is your business/trade income plus any other personal income, minus all deductions, reliefs and rebates.
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