Understanding Partnerships and Their Taxation

🔑Partnerships are defined as contracts where two or more persons contribute money, property, or industry into a common fund with the intention of dividing profits among themselves.

💼General partnerships, including professional general partnerships, are treated as corporations for taxation purposes.

💰Partnerships can have non-operating activities, which may be eligible for deductions or allowable reductions.

📊Small and medium enterprises (SMEs) with income below 95 million are subject to income tax expenses.

💸Net income before tax minus income tax expenses equals net income after tax, which can be distributed among partners.

What is the definition of a partnership?

—A partnership is a contract where two or more persons contribute money, property, or industry into a common fund with the intention of dividing profits among themselves.

How are general partnerships treated for taxation purposes?

—General partnerships, including professional general partnerships, are treated as corporations for taxation purposes.

Can partnerships have non-operating activities?

—Yes, partnerships can have non-operating activities, which may be eligible for deductions or allowable reductions.

What are the income tax expenses for small and medium enterprises (SMEs)?

—SMEs with income below 95 million are subject to income tax expenses.

How is net income after tax distributed among partners?

—Net income before tax minus income tax expenses equals net income after tax, which can be distributed among partners.

00:14Partnerships are defined as contracts where two or more persons contribute money, property, or industry into a common fund with the intention of dividing profits among themselves.

03:38Partnerships, including professional general partnerships, are treated as corporations for taxation purposes.

05:05Partnerships can have non-operating activities, and these may be eligible for deductions or allowable reductions.

06:00Small and medium enterprises (SMEs) with income below 95 million are subject to income tax expenses.

07:04Net income before tax minus income tax expenses equals net income after tax, which can be distributed among partners.