Responsibilities of precedent partners

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.

For new partnerships registered with ACRA, IRAS will in the absence of information on the partnership agreement, generally identify a partner who is also a manager of the partnership, as the precedent partner of the partnership. Where none of the partners are managers, a partner who is a Singapore citizen or Singapore permanent resident can be identified as the precedent partner.

If there is any change to the precedent partner, the precedent partner can update us with the details of the new precedent partner as agreed upon and appointed by the other partners. The change can be made when the partner is e-Filing their Form P (via Partnership Particulars > Particulars of Ceased/ Withdrawn Precedent Partner).  Alternatively, the precedent partner can write in to IRAS to provide the full name and address of the new precedent partner as well as the date that he became the precedent partner.

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.
   Individual partners have to each 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 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.
   
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. Give one month's written notice to IRAS if any partner
   1. Ceases or is about to cease being a partner and is likely to be chargeable to tax in Singapore; or
   2. 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

1. name of the partner;
2. new address of the partner; and
3. 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:

1. Singapore citizen; or
2. Singapore permanent resident and is not leaving Singapore permanently.

Filing Form P

The precedent partner files Form P on behalf of the partnership.

Methods of filing

1. e-File via myTax Portal
   File Form P online via myTax Portal using your Singpass.
2. Paper filing
   
   

Obligation to file Form P
The partnership has to file Form P as long as

1. the partnership has done business in that year; or
2. the partnership received a notification from IRAS to file.
   
   

When the partnership has done business in that year
You must file Form P when the partnership has done business in the preceding year even if you did not receive a notification from IRAS. Please contact us if you have not received Form P by January. Form P will be issued to the precedent partner for filing.

When the partnership has not done any business in that year
The partnership has to file 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 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 notification to file Form P by January. If you do not receive it by then, please contact us. Form P will be issued to the precedent partner for filing.

Notifying IRAS of changes in partnership

Businesses registered with ACRA
Please visit ACRA website at 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 with details of the changes when filing Form P.

Notifying IRAS of changes in composition of partners

1. Report the particulars of new/ withdrawn partners in Form P.
2. Declare the 2*/ 4-line statement for the different periods involved in that year. In page 2 of Form P, declare the 2/ 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 2/ 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.

* With effect from Year of Assessment (YA) 2022, you should report your business income using the 2-line statement when your revenue is $200,000 or less.

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

If your business' revenue is $500,000 or more

You are required to submit the certified statement of accounts of your business, together with Form P.

Please submit the certified statement of accounts as a single attachment when you e-File your Form P.

'Certified' means signed by you (as a precedent partner), indicating that the accounts are true and correct. 'Statement of accounts' comprises:

• Profit and loss account; and
• Balance sheet

If your business' revenue is less than $500,000

You need not submit the certified statement of accounts. However, you must still prepare the accounts and keep proper records of your business transactions as IRAS may request for them to be submitted 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, if not specifically tax exempted, must be reported in Form P.

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