Tax Rates and Exemptions for Partnerships

Like the general partnership, the Limited Partnership is not an entity in law andthe partners rather than the partnership are subject to tax. Each partner will be taxed on his or its share of the income from the partnership:

• an individual partner will be taxed on his personal income tax rate
• the company partner will be taxed at the rate for companies.

The limited partners of an LP are treated in the same manner as the partners of an LLP for income tax purposes.

Download e-tax guide from IRAS

Income tax rates

Company tax rates

The amount of a partner’s share of capital allowance and trade loss from the LP 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 LP is similar to that of a partnership. If a loss has incurred, the LP 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.

See NOR for individual partners and Company Tax Exemptions Schemes.