Filing Guidelines: Income Tax for General Professional Partnership

By: Pamela Ruth G. Calog, CPA

4 days ago

Under the Tax Code, a General Professional Partnership (GPP) as such shall not be subject to the income tax. Persons engaging in business as partners in a general professional partnership shall be liable for income tax only in their separate and individual capacities.


For purposes of computing the distributive share of the partners, the net income of the partnership shall be computed in the same manner as a corporation.


Each partner shall report as gross income his distributive share, actually or constructively received, in the net income of the partnership.


To simplify, GPP are exempt from income tax. It is not a taxable entity for Income Tax purposes since it is only acting as a “pass-through” entity where its income is ultimately taxed to the partners comprising it.


What form shall be filed?


Every GPP shall file BIR Form No. 1702-EX, in duplicate, a return of its income, except income exempt under Section 32 (B) of this Title, setting forth the items of gross income and of deductions allowed by this Title, and the names, Taxpayer Identification Numbers (TIN), addresses and shares of each of the partners.


When to File?


This return is filed on or before the 15th day of the 4th month following the close of the taxpayer's taxable year.



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