(1) The partners of a partnership enterprise shall determine the taxable income from the production, operation and other income of the partnership enterprise according to the distribution ratio agreed in the partnership agreement.
(2) If the partnership agreement is not stipulated or clearly stipulated, the taxable income shall be determined according to the distribution ratio decided by the partners through consultation with all the income from production and operation and other income.
(3) If negotiation fails, the taxable income shall be determined according to the total production and operation income and other income and the proportion of the paid-in capital contribution of the partners.
(4) If the proportion of capital contribution cannot be determined, the taxable income of each partner shall be calculated on the basis of the total production and operation income and other income according to the number of partners. The partnership agreement shall not stipulate that all profits shall be distributed to some partners.
If the partners of a partnership are legal persons or other organizations, the partners shall not use the losses of the partnership to offset their profits when calculating the enterprise income tax.
Legal basis:
Notice of the Ministry of Finance and State Taxation Administration of The People's Republic of China on the Income Tax of Partners in Partnership Enterprises II
A partnership enterprise takes each partner as the taxpayer. 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.
Notice of the Ministry of Finance and State Taxation Administration of The People's Republic of China on the Income Tax of Partners in Partnership Enterprises
The partners of a partnership enterprise shall determine the taxable income according to the following principles:
(1) The partners of a partnership enterprise shall determine the taxable income from the production, operation and other income of the partnership enterprise according to the distribution ratio agreed in the partnership agreement.
(2) If the partnership agreement is not stipulated or clearly stipulated, the taxable income shall be determined according to the distribution ratio decided by the partners through consultation with all the income from production and operation and other income.
(3) If negotiation fails, the taxable income shall be determined according to the total production and operation income and other income and the proportion of the paid-in capital contribution of the partners.
(4) If the proportion of capital contribution cannot be determined, the taxable income of each partner shall be calculated on the basis of the total production and operation income and other income according to the number of partners.
The partnership agreement shall not stipulate that all profits shall be distributed to some partners.