Practice question
Under Section 26, who bears income tax on a general professional partnership’s distributive net income?
- Only the GPP as an ordinary taxable corporation
- No one under any circumstances
- Only its receptionist
- The partners in their separate individual capacities on their shares
- Only the biggest client
Legal references
- NIRC, Sections 26, 32(B) and 40(A), (C)(3)-(5), read with later amendments: https://lawphil.net/statutes/repacts/ra1997/ra_8424_1997.html
- BIR Revenue Regulations 8-2018, compensation, minimum-wage and professional/GPP rules, read with subsequent amendments: https://bir-cdn.bir.gov.ph/local/pdf/RR%20No.%208-2018.pdf
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