Tax & Revenue

Filing Responsibilities of Precedent Partners

Date: 05 February 2019; Type: Guideline; Source: Inland Revenue Authority of Singapore

The precedent partner is the first named 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. All precedent partners must file Form P.

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:

1. File Form P by the filing due date.

2. Inform all the partners of their share of income from the partnership.

The partners each have to 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.

5,000 partnerships with more than 10,000 partners had e-Filed their business income in Feb last year and availed the pre-filling service to their partners.

3. Lodge, on behalf of the other partners, any objection to the adjusted profit of the partnership computed by IRAS.

4. Inform IRAS of any change of partners.

5. To give one month's written notice to IRAS if any partner

a. Ceases or is about to cease being a partner and is likely to be chargeable to tax in Singapore; or

b. 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

a. name of the partner;

b. new address of the partner;

c. 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.

Administrative Concession

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:

a. Singapore citizen; or

b. 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

Filing Deadline

e-Filing

18 Apr 2018

Paper Filing

15 Apr 2018


Methods of Filing

a. e-File via myTax Portal

File Form P online via myTaxPortal using your CorpPass.

b. Paper Filing

Obligation to File Form P

The partnership has to file Form P as long as

a. the partnership has done business in that year; or

b. 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 that year even if you did not receive a notification from IRAS. Please call our Income Tax helpline at 1800-356 8300 to request for the Form P if you have not received Form P by January. We will post the Form P to the precedent partner when we receive your request.

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.

1. e-Filing

Please select the status as "No Business Activity” at the Selection Page.

2. 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 the Form P by January. If you do not receive it by then, please call our Income Tax helpline at 1800-356 8300 to request for the Form P. 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

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 on the change when filing the Form P.

If you are submitting the paper tax form, you have to complete item 1 and item 2 on page 1 of Form P to inform us of any changes in the partnership particulars.

Notifying IRAS of Changes in Composition of Partners

1. Complete item 1 and/or item 2 on page 1 of the Form P to report the particulars of new/ withdrawn partners.

2. 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.

3. Attach additional sheets to declare the 4-line statement and the partners' allocation of profit/ loss for the other periods involved in that year.

4. Submit the certified statement of accounts for the different periods concerned if the annual business revenue is $500,000 or more.

When there is a change of the precedent partner, the new precedent partner must write in to IRAS and provide to IRAS (a) his full name (b) address and (c) the date that he became the precedent partner.

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.

'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 must be reported in the Form P.

Notice: The Publishers of Asean LIP acknowledge the permission granted by the relevant official/ original source for the reproduction of the above/ attached materials. You shall not reproduce the above/ attached materials in whole or in part without the prior written consent of the Publishers and/or the original/ official source. Neither the Publishers nor the official/ original source will be liable for any loss, injury, claim, liability, or damage caused directly, indirectly or incidentally to errors in or omissions from the above/ attached materials. The Publishers and the official/ original source also disclaim and exclude all liabilities in respect of anything done or omitted to be done in reliance upon the whole or any part of the above/attached materials. The access to, and the use of, Asean LIP and contents herein are subject to the Terms of Use.

Get ASEAN LAW ALERT

Legal updates by e-mail. It's Free.

INDUSTRY UPDATES

Those given Trust, Power should Build a better Nation Based on Rule of Law - Sultan Nazrin

KUALA LUMPUR, Apr 25 (Bernama) - The Sultan of Perak, Sultan Nazrin Shah said those given the trust, power and position, now have the opportunity to build a better Malaysia based on the rule of law.

Read More

INDUSTRY UPDATES

King decides High Court Registry Location on Advice of PM - Sabah Law Society

KOTA KINABALU, Apr 25 (Bernama) - The principal registry of the High Court of Sabah and Sarawak can be relocated to any place in Sabah or Sarawak as determined by the Yang di-Pertuan Agong acting on the advice of the prime minister, the Sabah Law Society (SLS) said today.

Read More

INDUSTRY UPDATES

SC, DOJ Buildings declared Safe

MANILA, Apr 24 (PNA) - Work resumed at the Supreme Court (SC) and the Department of Justice (DOJ) on Wednesday, after the magnitude 6.1 earthquake that shook parts of Luzon including Metro Manila last Monday.

Read More

INDUSTRY UPDATES

SC asked to allow Poll Watchers to take Photos

MANILA, Apr 24 (PNA) - Various individuals and groups asked the Supreme Court (SC) to lift the ban imposed by the Commission on Elections (Comelec) on digital photo taking by watchers of candidates in the May 13 mid-term polls.

Read More

INDUSTRY UPDATES

Makati Court hears Drug Case vs Ex-NBI Exec

MANILA, Apr 24 (PNA) - A prosecution witness positively identified the former acting regional director of the National Bureau of Investigation (NBI) in Central Mindanao as the owner of a 1,000-square meter lot in Virac, Catanduanes, where a shabu laboratory was uncovered three years ago.

Read More

INDUSTRY UPDATES

Mobile Application on Labour Market Information Launched

PUTRAJAYA, Apr 23 (Bernama) - Information on Malaysia's labour market is now available at the fingertips with the launch of a new mobile application, Labour Market Information Gateway or LMI Gateway today.

Read More

INDUSTRY UPDATES

Former Lawyer Pleads not Guilty to CBT Over Client's House Sale Proceeds

KUALA LUMPUR, Apr 23 (Bernama) - A former lawyer pleaded not guilty at the Sessions Court here today to a charge of criminal breach of trust amounting to RM338,000 which was the proceeds from the sale of a house belonging to his client three years ago.

Read More

INDUSTRY UPDATES

Manila Court orders Arrest of Acierto, Seven Others

MANILA, Apr 23 (PNA) - A Manila court has ordered the arrest of former police official Eduardo Acierto and seven others implicated in the smuggling of shabu shipments inside magnetic lifters last year.

Read More

INDUSTRY UPDATES

SC orders Inspection of Court Houses in Quake-Affected Areas

MANILA, Apr 23 (PNA) - Chief Justice Lucas Bersamin on Tuesday ordered an inspection of all court houses in areas affected by the magnitude 6.1 earthquake that hit Luzon on Monday afternoon.

Read More

INDUSTRY UPDATES

Cybersecurity Challenge should be viewed as an Opportunity - Gobind

CYBERJAYA, Apr 23 (Bernama) - A national innovation ecosystem needs to be developed to transform cybersecurity challenges towards forming new opportunities, ideas and solutions, Communications and Multimedia Minister Gobind Singh Deo said today.

Read More

INDUSTRY UPDATES

Malaysia signs ASEAN Trade in Services Agreement

KUALA LUMPUR, Apr 23 (Bernama) - Malaysia has signed the ASEAN Trade in Services Agreement (ATISA) and the Fourth Protocol to Amend the ASEAN Comprehensive Investment Agreement (ACIA).

Read More

INDUSTRY UPDATES

Former Lawyer charged with Criminal Breach of Trust

SEREMBAN, Apr 23 (Bernama) - A former lawyer pleaded not guilty in the Sessions Court here today to criminal breach of trust involving RM198,592.50, nine years ago.

Read More

INDUSTRY UPDATES

PCC seeks Own Probe on Luzon Power Outages

MANILA, Apr 22 (PNA) - The Philippine Competition Commission (PCC) announced that it will investigate allegations of collusion or abuse of dominance among energy companies that led to the recent series of power outages in Luzon.

Read More

INDUSTRY UPDATES

Right to Freedom of Religion guaranteed under Federal Constitution

KOTA BELUD, Apr 21 (Bernama) - The right to freedom of religion of every Malaysian is guaranteed under the Federal Constitution, said Sabah Rural Development Minister Datuk Ewon Benedick.

Read More

INDUSTRY UPDATES

Sabah and Sarawak High Court Registrar's Office to move to Kota Kinabalu

SANDAKAN, Apr 21 (Bernama) -- Minister in the Prime Minister’s Department Datuk Liew Vui Keong today confirmed that the Office of the Registrar of the Sabah and Sarawak High Court will be relocated from Kuching to Kota Kinabalu.

Read More