Partner's share in a partnership
How does a partner declare partnership income?
The situation
The partnership files its own return showing each partner's share. Each partner then declares their share in their own Form B.
The law
- Sec 77, Income Tax Act 1967: Individuals furnish a return each year: Form BE by 30 April, Form B by 30 June
What it means for you
Make sure the shares match the partnership agreement and the partnership return. Capital allowances may also be shared. Mismatches trigger queries. The partnership itself does not pay income tax; partners do. Late or wrong partnership figures delay every partner's own return.
What to do
- Get the partnership's computation.
- Note your share.
- Include it in Form B.
- Keep the agreement.
We can do this for youForm B for business, freelance and partnership income: MYR 450