I have received a copy of the business’s statement of partner income and assets in a business assessed as a partnership (RF-1233) from a business in which I owned shares during the income year. Do I have to submit the partner statement as an attachment to the tax return?
Yes, you do. Advice on how the tax return should be completed by a personal taxpayer who has been a partner in a business assessed as a partnership. Partners in ANS, DA, KS, etc. must submit the partner statement of income and assets in a business assessed as a partnership themselves. You should obtain the figures which you enter in the form from the copy of RF-1233 which you received from the business in which you are a partner, and transfer them to form RF-1221.
I have received a copy of the business’s statement of partner income and assets in a business assessed as a partnership (RF-1233). Why are there amounts under item 1143 of the partner statement “Additions to general income”?
As a partner in a business assessed as a partnership, you must transfer your share of the fiscal surplus/deficit in the business to the tax return under one of the following items: 2.1.3, 2.7.7, 2.7.8 or 3.2.19. You must also transfer the amount from item 1143 of form RF-1221 to item 2.7.10 or 2.7.11 of the tax return. An amount will be shown under item 1143 of form RF-1221 if the business has distributed cash, assets and/or services to you during the income year free of charge. The same will apply if you have received any benefits through using the business’s assets either free of charge or on a subsidised basis during the income year. Such distributions will be treated in approximately the same way as dividends from a private limited company. In sections II and V of form RF-1233, you will see how your additions to general income have been calculated. Under item 205, you can see whether a proportion of the distributed amount has been treated as the repayment of previously deposited equity on your share. In addition, there may also be a deduction for risk-free return as well as tax due on any surplus under item 1120 of RF-1233.
Who sends me a copy of the business’s statement of partner income and assets in a business assessed as a partnership (RF-1233)?
The board of directors or the general manager of a business assessed as a partnership must fulfil the obligations incumbent on the business pursuant to Section 8-9 of the Tax Administration Act. If the business does not have a board of directors or general manager, the above obligations must be fulfilled by either the partners jointly or a representative from amongst the partners.
In 2016, I received work remuneration from a business assessed as a partnership (KS, ANS, etc.). Where should I enter this remuneration in my tax return?
You should transfer the work remuneration from item 1160 of form RF-1221 to the tax return item 1.7.1, or from item 1162 of form RF-1221 to the tax return item 1.7.4. The work remuneration is also included in the amount which you transfer from item 1140 of form RF-1221 to the tax return item 2.1.3, 2.7.7, 2.7.8 or 3.2.19.