Ordinary partnerships do not have a legal entity and are not subject to income (corporate) tax. If they operate as an ordinary partnership, the partnership is subject to withholding tax and value added tax, and in ordinary partnerships, the partners are jointly and severally liable for the payment of withholding tax, VAT and other taxes assessed on behalf of the partnership.
In addition, if the partner of the ordinary partnership has a legal entity, the profits he/she earns will be subject to corporate tax, and if he/she is a natural person, he/she will be subject to income tax. In the 4th section of the Tax Procedure Law General Communiqué No. 456 titled “Persons to be Notified Electronically”, corporate taxpayers who are required to use an electronic address suitable for notification and to whom notifications can be made electronically are as follows; Since they are determined as those who are subject to income tax in terms of commercial, agricultural and professional income (excluding farmers whose income is determined by the simple method and those who are not subject to tax in the real method), e-notification activation is required on behalf of the partners of the ordinary partnership due to their income and/or corporate tax liabilities.
On the other hand, since ordinary partnerships are not listed among those who are required to use an electronic address suitable for notification in the Tax Procedure Law General Communiqué numbered 456, they are not required to be included in the e-notification system, but of course they can optionally benefit from the system if they request electronic notification on behalf of the partnership.
Source: Revenue Administration Special Notice
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