Taxation of partnership and their partners

Unincorporated Partnerships
Individuals, companies and other legal entities may join with others to form a partnership, usually established under a contract and jointly conduct Business or hold investments. Partnerships can take a range of different forms, and can be incorporated, such as Limited Liability Partnerships (LLPs), or Unincorporated Partnerships, such as general partnerships and joint ventures (JVs).

Incorporated partnerships (see Section 8.2.2) have a separate legal personality from their partners and are treated as a juridical person that is subject to Corporate Tax at the partnership level.

However, where a partnership does not have a separate legal personality, each partner is treated as:

• conducting the Business of the partnership;293
• having a status, intention, and purpose of the partnership;294
• holding assets that the partnership holds;295 and
• being party to any arrangement to which the partnership is a party.296

In this case, the Unincorporated Partnership is not considered a Taxable Person in its own right, as it is not considered a juridical person.297 This means that the partnership itself is not subject to Corporate Tax, and each partner is subject to Corporate Tax on their income from the partnership.298 The activities of the partnership are treated as

being carried out by the partners, and each partner is taxed in proportion to their distributive share in the partnership.

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