The partnership means you have someone who is equally responsible. It means if you have a business that is in a partnership so it's beneficial for you because you share the same things and take the right decision for your business.
As per the Australian taxation obligations, a partnership entity is required to lodge a partnership tax return even though it may be a non-taxable entity. Every partner in the partnership business is required to pay taxes on their share of income earned from the business. The furnishing and lodgement of such a partnership tax return are compulsory and obligatory on every partner earning profits from the partnership business. Tax Return Perth is one of the most highly-regarded tax consultants in Perth.
How Is Partnership Income Tax Return Calculated?
The salary payments to partners are, however, not considered as a tax-deductible partnership expense because it is also a part of the profits earned by the partnership. The reason being, a partnership does not identify the partners as employees of the firm. Get assistance from a tax accountant in Perth to understand the best calculation methods for the partnership tax return.
Lodging Of Partnerships Tax Return
In Australia, it's mandatory to lodge the partnership tax return but the thing that may confuse you is you don't need to pay the tax of your partnership on your own income. The income you have got from your partnership is equally distributed among the business partners so at that time the income you got individually on that income you have to pay the tax.
In Australia, the lodgement date is the 31st of October.
