1.

The partnership is subject to the same rules on corporations (capital gains tax, final tax on passive
income, normal tax, minimum corporate income tax [MCIT] and gross income tax [GIT]), but is NOT
subject to the IAET. The partnership must file quarterly and year-end income tax returns.

2. The taxable income of the partnership, less the normal corporate income tax, is the distributable net
income of the partnership.

Distributable income = Taxable income - Normal corporate income tax

3. The share of a partner in the partnership’s distributable net income of a year shall be deemed to have
been actually or constructively received by the partners in the same taxable year and shall be taxed to
them in their individual capacity, whether actually distributed or not. [Sec. 73(D)] Such share will be
subjected to a final tax of 10% to be withheld by the partnership. [Sec. 24(B)(2)]

4. The partnership is subject to the same rules on corporations (capital gains tax, final tax on passive
income, normal tax, minimum corporate income tax [MCIT] and gross income tax [GIT]), but is NOT
subject to the IAET. The partnership must file quarterly and year-end income tax returns.

5. The taxable income of the partnership, less the normal corporate income tax, is the distributable net
income of the partnership.

Distributable income = Taxable income - Normal corporate income tax

6. The share of a partner in the partnership’s distributable net income of a year shall be deemed to have
been actually or constructively received by the partners in the same taxable year and shall be taxed to
them in their individual capacity, whether actually distributed or not. [Sec. 73(D)] Such share will be
subjected to a final tax of 10% to be withheld by the partnership. [Sec. 24(B)(2)]

7. The partnership is subject to the same rules on corporations (capital gains tax, final tax on passive
income, normal tax, minimum corporate income tax [MCIT] and gross income tax [GIT]), but is NOT
subject to the IAET. The partnership must file quarterly and year-end income tax returns.

8. The taxable income of the partnership, less the normal corporate income tax, is the distributable net
income of the partnership.

Distributable income = Taxable income - Normal corporate income tax

9. The share of a partner in the partnership’s distributable net income of a year shall be deemed to have
been actually or constructively received by the partners in the same taxable year and shall be taxed to
them in their individual capacity, whether actually distributed or not. [Sec. 73(D)] Such share will be
subjected to a final tax of 10% to be withheld by the partnership. [Sec. 24(B)(2)]

10. The partnership is subject to the same rules on corporations (capital gains tax, final tax on passive
income, normal tax, minimum corporate income tax [MCIT] and gross income tax [GIT]), but is NOT
subject to the IAET. The partnership must file quarterly and year-end income tax returns.

11. The taxable income of the partnership, less the normal corporate income tax, is the distributable net
income of the partnership.
 Distributable income = Taxable income - Normal corporate income tax

12. The share of a partner in the partnership’s distributable net income of a year shall be deemed to have
been actually or constructively received by the partners in the same taxable year and shall be taxed to
them in their individual capacity, whether actually distributed or not. [Sec. 73(D)] Such share will be
subjected to a final tax of 10% to be withheld by the partnership. [Sec. 24(B)(2)]

13. The partnership is subject to the same rules on corporations (capital gains tax, final tax on passive
income, normal tax, minimum corporate income tax [MCIT] and gross income tax [GIT]), but is NOT
subject to the IAET. The partnership must file quarterly and year-end income tax returns.

14. The taxable income of the partnership, less the normal corporate income tax, is the distributable net
income of the partnership.

Distributable income = Taxable income - Normal corporate income tax

15. The share of a partner in the partnership’s distributable net income of a year shall be deemed to have
been actually or constructively received by the partners in the same taxable year and shall be taxed to
them in their individual capacity, whether actually distributed or not. [Sec. 73(D)] Such share will be
subjected to a final tax of 10% to be withheld by the partnership. [Sec. 24(B)(2)]

16. The partnership is subject to the same rules on corporations (capital gains tax, final tax on passive
income, normal tax, minimum corporate income tax [MCIT] and gross income tax [GIT]), but is NOT
subject to the IAET. The partnership must file quarterly and year-end income tax returns.

17. The taxable income of the partnership, less the normal corporate income tax, is the distributable net
income of the partnership.

Distributable income = Taxable income - Normal corporate income tax

18. The share of a partner in the partnership’s distributable net income of a year shall be deemed to have
been actually or constructively received by the partners in the same taxable year and shall be taxed to
them in their individual capacity, whether actually distributed or not. [Sec. 73(D)] Such share will be
subjected to a final tax of 10% to be withheld by the partnership. [Sec. 24(B)(2)]