Although a partnership is a legal person eligible to make contracts, it is not taxed directly. Partnership profits are allocated to the partners, who are taxed on their individual shares.
Partnerships are required to file information tax returns which provide the tax authorities with information regarding the taxable income and the profit split between the partners in the partnership.. The partners report their proportional share of partnership income in their own tax returns.
The contents of this article are intended as a general guide to the subject matter. Specialist advice should be sought for your specific circumstances.
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