Limited Liability Partnerships (LLPs) in Singapore offer a flexible business structure that combines the benefits of a company and a traditional partnership. However, even though the law doesn’t tax LLPs at the entity level, they still bear the important responsibility of filing income tax returns on behalf of their partners. Understanding how to file your LLP Income Tax Return is essential for legal compliance, financial accuracy, and avoiding unnecessary penalties.
In this guide, we will walk you through everything you need to know about the LLP Income Tax Return in Singapore, including tax responsibilities, deadlines, required forms, and best practices.
Understanding How LLPs Are Taxed in Singapore
Before you file taxes, you must understand how Singapore treats LLPs under its tax laws. Unlike private limited companies, an LLP does not pay tax as a separate legal entity. Instead, the law taxes the profits directly in the hands of the partners. This approach reflects the concept of tax transparency.
LLP Partners and Taxation
- Individual partners are taxed based on personal income tax rates.
- Corporate partners are taxed based on corporate tax rates.
All profits or losses from the LLP must be allocated among partners according to the agreed profit-sharing ratio and reported in their individual or corporate tax returns.
LLP Income Tax Return: Who Is Responsible?
The precedent partner usually the one listed first in the partnership agreement is responsible for filing the LLP Income Tax Return. This includes both:
- The Form P, which declares the LLP’s total income, and
- Ensuring each partner includes their share of income in their respective returns.
If your LLP has income or has carried on business in the financial year, even if it made no profit, you are required to file these returns.
Key Steps to File LLP Income Tax Return in Singapore
 Step 1 – Prepare Financial Statements
Before filing, the LLP must prepare its financial statements, which typically include:
- Profit and Loss (P&L) statement
- Balance Sheet
- General ledger details
- Revenue and expense breakdown
If your LLP’s revenue exceeds a certain threshold (e.g., SGD 500,000), you may also be required to have the statements audited or certified.
 Step 2 – File Form P (Partnership Income Tax Return)
Form P must be filed by the precedent partner. This form outlines:
- Total income of the LLP
- Allocation of income among partners
- Business activity details
Deadline:
- Paper filing: by 15 April of the following year
- e-Filing (via myTax Portal): by 18 April
The information declared in Form P will be automatically shared with the IRAS and reflected in the individual income tax returns of the partners.
 Step 3 – Partners File Their Individual Returns
Each partner must file their own income tax return, declaring their share of income from the LLP:
- Form B1 – For salaried individuals
- Form B – For self-employed individuals
- Form C or C-S – For corporate partners
The income stated in Form P should match what is reported by each partner in their respective forms.
 Step 4 – Estimated Chargeable Income (ECI) (If Applicable)
IRAS may require you to file an Estimated Chargeable Income (ECI) if you incorrectly declare or misunderstand the partnership structure, especially when it involves corporate partners—even though IRAS does not tax LLPs directly. In most LLP cases, you don’t need to file ECI unless you wrongly structure or misclassify the entity.
Filing LLP Income Tax Return for Dormant LLPs
Even if your LLP did not generate income during the financial year, IRAS may still require you to:
- File a ‘Nil’ Form P
- Declare zero income in partners’ returns
Failing to do this may trigger compliance alerts or penalties from the IRAS.
Filing Annual Declarations with ACRA
Besides tax filings with IRAS, all LLPs in Singapore must submit Annual Declarations to ACRA. This includes a declaration of solvency or insolvency.
- Must be filed once every calendar year
- Within 15 months from the date of the last declaration
Failure to file on time can result in fines and potential legal action, including striking off the LLP.
Tax Filing Deadlines for LLPs in Singapore
| Task | Deadline |
|---|---|
| Form P (Partnership Return) | 15 April (paper) / 18 April (e-file) |
| Partners' Individual Returns | 15 April (paper) / 18 April (e-file) |
| ACRA Annual Declaration | Within 15 months of last filing |
Meeting these deadlines is crucial to maintaining your LLP’s good standing and avoiding financial penalties.
Record-Keeping Requirements for LLPs
To support your LLP Income Tax Return, you must maintain accurate records for at least five years from the relevant Year of Assessment (YA). Required records include:
- Source documents (receipts, invoices)
- Bank statements
- Sales and purchase ledgers
- Expense reports
- Contracts and agreements
If your LLP’s revenue exceeds certain thresholds, we strongly recommend that you have professionals maintain or verify your records.
Common Mistakes in Filing LLP Income Tax Return in Singapore
Many LLPs make errors that can be costly or delay compliance. Common mistakes include:
 1. Missing Filing Deadlines
Failing to submit Form P or partner returns on time can result in penalties and enforcement notices.
 2. Incorrect Income Allocation
Misreporting each partner’s share of income can lead to discrepancies between Form P and individual tax returns.
 3. Assuming LLPs Are Tax-Exempt
The government does not tax the LLP entity itself, but it fully taxes the income distributed to partners. Misunderstanding this leads to underreporting.
 4. Poor Record-Keeping
Without proper documentation, IRAS may disallow deductions or even impose additional taxes.
Advantages of Filing Your LLP Income Tax Return Accurately
- Avoid penalties and fines
- Maintain regulatory compliance
- Ensure accurate partner taxation
- Enhance business credibility
- Streamline future audits and filings
By proactively managing your LLP’s tax obligations, you position your business for long-term success and reputation.
How Ease to Compliance Helps Your LLP Stay Compliant
At Ease to Compliance, our team specializes in managing every aspect of the LLP Income Tax Return in Singapore. We understand the complexities involved and ensure your filings are accurate, timely, and fully compliant.
Here’s how our firm supports your LLP:
- Preparation and filing of Form P
- Assistance with partner income allocations
- Filing of individual and corporate partner returns
- Preparation of financial statements
- Managing ACRA annual declarations
- Guidance on record-keeping best practices
- Ongoing compliance monitoring and reminders
Whether you’ve just formed an LLP or run an established business, our team handles your tax responsibilities smoothly and efficiently.
Contact us today to learn how we can simplify your LLP’s tax filing process.
Final Thoughts
Filing an LLP Income Tax Return in Singapore may seem straightforward at first glance, but it requires a strong understanding of tax transparency rules, partnership income distribution, and multiple compliance filings. From Form P to individual partner returns and ACRA obligations, staying compliant protects your LLP from fines and unnecessary complications.
With the right expertise and a proactive approach, you can navigate the tax filing process efficiently. For expert guidance and hands-on support, trust Ease to Compliance to keep your LLP tax-compliant, audit-ready, and focused on growth.
FAQs on LLP Income Tax Return in Singapore
Question 1. Can an LLP in Singapore be exempted from filing Form P?
Answer: No, all LLPs that carry on business or have income in the financial year must file Form P. Only dormant LLPs with no income or activity may apply for a waiver, subject to IRAS approval.
Question 2. Can partners personally deduct business expenses in their tax returns?
Answer: The LLP should claim all business-related expenses at the entity level. Partners cannot claim LLP-related business expenses in their individual tax returns unless incurred directly and personally for the partnership.
Question 3. Is GST registration required for LLPs in Singapore?
Answer: Yes, if an LLP’s annual taxable turnover exceeds SGD 1 million, it must register for GST. GST compliance is separate from income tax filing and involves its own set of returns and deadlines.
