Tax Rates and Exemptions for Limited Liability Partnerships (LLP)

The LLP will be regarded in law as "bodies corporate" which means that the partners rather than the partnership are subject to tax. For income tax purposes, an LLP will be treated as a partnership and each partner will be taxed on his or its share of the income from the LLP:

• Where the genral partner is an individual, his share of income from the LLP will be taxed based on his personal income tax rate.
• Where the general partner is a company, its share of income from the LLP will be taxed at the tax rate for companies.

Income tax rates

Company tax rates

The amount of a partner’s share of capital allowance and trade loss from the LLP that can be offset against his other sources of income.The total offset shall not exceed each partner’s contributed capital as at the end of the basis period relating to the current year of assessment.

The income tax filing procedure of an LLP is similar to that of a partnership. If a loss has incurred, the LLP needs to submit a Capital Contribution Form for the Year of Assessment in which the loss is incurred, and subsequent Years of Assessment whether it makes a profit or loss.

Download e-tax guide from IRAS

See NOR for individual partners and Company Tax Exemptions Schemes.