Partner receipts from firms: remuneration is business income, while qualifying profit shares remain excluded from personal income. Interest, salary, bonus, commission and remuneration received by a partner from a firm are taxable as business income only to the extent allowed as a ... Summary
Partner receipts from firms: remuneration is business income, while qualifying profit shares remain excluded from personal income.
Interest, salary, bonus, commission and remuneration received by a partner from a firm are taxable as business income only to the extent allowed as a deduction in computing the firm's income. A qualifying partner's share in the total income of a separately assessed firm is excluded from the partner's total income and remains distinct from remuneration-related receipts. The profit share is determined under the partnership deed's profit-sharing ratio, and the partner cannot set off their share in the firm's loss against other personal income.
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