According to the Partnership Enterprise Law and other relevant regulations, the income from production, operation and other income of a partnership enterprise adopts the principle of "distributing first and then paying taxes": the partnership enterprise takes each partner as the taxpayer and does not pay income tax at the partnership enterprise level. If the partners of a partnership are natural persons, they shall pay individual income tax; If the partners are legal persons or other organizations, they shall pay enterprise income tax.

The balance of the total income of the partnership after deducting costs, expenses and losses in each tax year is the income from production and operation. The above-mentioned "income from production and operation and other income" includes the income distributed by the partnership to all partners and the income (profit) retained by the enterprise in the current year.