Does a partnership need to pay income from production and operations? If the partners of a partnership are natural persons, they must pay personal income tax; if the partners are legal persons and other organizations, they must pay corporate income tax.

When a partnership invests in a resident enterprise and the invested enterprise makes a profit distribution decision, the partnership shall recognize the investment income, with the two partners as taxpayers, and the investment income obtained by the distribution of the resident enterprise shall be tax-free income in compliance with the provisions of the "Corporate Income Tax"

If the conditions are met, it can be deducted from the taxable income when calculating corporate income tax; the investment income distributed by individual shareholders shall pay personal income tax according to the tax category of "interest, dividends, and bonus income", and the relevant taxes shall be paid by the paying enterprise in accordance with the law.

Withholding and payment.

If interest, dividends, and bonuses are distributed from external investments in the name of a partnership, the interest, dividends, and bonus income of each investor shall be determined in accordance with the spirit of Article 5 of the regulations attached to the "Notice" and shall be classified as "interest, dividends, and bonus income" respectively.

Taxable items are calculated and paid personal income tax.

Equity transfer income and dividend income of a partnership enterprise Under normal circumstances, equity transfer income and dividend income must still be incorporated into the partnership enterprise income, and personal income tax shall be paid according to the operating income in the above article.

However, for venture capital companies whose main income is equity income and dividend income, the operating income tax burden is heavier.

There have always been preferential policies for venture capital partnerships in various places, allowing individual tax to be paid at 20% instead of the excessive progressive tax rate of 5% to 35%.

However, at the national level, there has been no clear policy.

At the executive meeting of the State Council on December 12, 2018, it was decided that on the basis of the preferential policy of deducting 70% of the investment amount from taxable income for venture capital enterprises investing in technology-based enterprises in the seed stage and start-up stage nationwide this year,

Starting from January 1 next year, venture capital companies that have been registered in accordance with the law can choose to be accounted for as a single investment fund, and their individual partners’ equity transfer and dividend income obtained from the fund will be subject to personal income tax at a rate of 20%; or they can choose to

Based on the overall accounting of the annual income of the venture capital enterprise, the personal income tax of its individual partners from the enterprise is calculated based on the excess progressive tax rate of 5% to 35%.

The implementation period of the above policy is tentatively set at 5 years.

The tax burden on individual partners of venture capital companies has been reduced, not increased.

Does a partnership need to pay income from production and operations?

Partnership enterprises have the above regulations for paying taxes, so everyone must pay attention to paying taxes.

The above are the answers to these questions, I hope they are helpful to everyone.

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