Partnership accounting and tax

Accounting and records


Unlike companies, partnerships do not have any special legal accounting or recording requirements. Of course it is good practice to keep proper accounting records for taxation purposes. Income and losses are allocated to each partner according to their shareholding in the partnership. Therefore it is important the accounts properly record income and loss so that each partners can calculate their individual tax.


Reporting and paying income tax

 

Although partnership does not pay tax, you need to lodge an annual partnership income tax return on behalf of the business to show the total income earned and deductions claimed by the business. The tax return also shows each partner's share of net partnership income.

As a partner, you must pay tax on your share of the partnership income (less expenses) you earn.

Under a partnership, each partner is personally liable for the tax debts of the partnership.


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JH Business Services & Taxation
Accounting | Business Advisory | Tax Services
Specialist in small to medium business 
& personal tax services


Norwest Office


 Suite 205
29-31 Lexington Drive
Bella Vista
NSW 2153