Remuneration of a general partner for running the affairs of the partnership constitutes, just like previously, the revenue from other sources
What problem has the authority resolved?
The application for the individual tax ruling was filed by an individual being general partner of a limited partnership. The general partner received remuneration for running the affairs of the partnership as per the limited partnership agreement, the amount of remuneration being agreed upon by way of the resolution of the partners.
In the individual tax ruling of 28 July 2021, No. 0115-KDIT1.4011.367.2021.1.MR, the Director of the National Tax Information confirmed that the fact that the partnership has been granted corporate income taxpayer status as from 1 May 2021 does not affect the classification of remuneration received by the general partner for running the affairs of the partnership. Such remuneration ought to be classified as revenues from other sources (pursuant to Article 10(1)(9) to be read with Article 20(1) of the Personal Income Tax Act). The authority also confirmed that due to the lack of a separate agreement for the management of the partnership and due to the fact, that remuneration on account of running the affairs of the partnership follows from the limited partnership agreement, therefore, the revenues gained on that account cannot be classified as revenues from personally performed activities (Article 10(1)(2) of the Personal Income Tax Act).
What’s next?
Remuneration of a general partner for running the affairs of the partnership is subject to personal income tax according to the tax scale, but in principle does not give rise to compulsory social/health insurance. Consequently, from January 2022, this form of remuneration of the general partner may prove to be an interesting alternative.
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