---
title: "How LLPs Are Taxed in Singapore | Complete Guide"
description: "Find out how Limited Liability Partnerships (LLPs) are taxed in Singapore. Understand partner tax obligations and corporate tax exemptions."
url: "https://corporate.taxinfo.sg/business-structure/llp-tax-treatment"
language: "en"
---

[Home](/)›[Business Structure](/business-structure)›LLP Tax Treatment Business Structure How LLPs Are Taxed in Singapore An LLP offers liability protection but is taxed differently from a Pte Ltd. Here's what partners need to know about LLP taxation. Who This Is For Professionals and business owners using or considering an LLP structure — lawyers, accountants, consultants, and small partnerships. TL;DR An LLP is a **tax-transparent entity** — the LLP itself doesn't pay tax. Instead, each partner is taxed on their share of the LLP's income at their **individual or corporate tax rate**. This is called pass-through taxation. While LLPs offer liability protection like a Pte Ltd, they don't benefit from corporate tax exemptions \(SUTE/PTE\) or the flat 17% rate. How LLP Taxation Works 1LLP earns income from business activities 2Income is allocated to partners based on the partnership agreement 3Each partner reports their share on their own tax return 4Individual partners: personal income tax rates \(0–22%\) 5Corporate partners: corporate tax rate \(17%\) LLP vs Pte Ltd vs Sole Proprietorship Feature | LLP | Pte Ltd | Sole Prop  
---|---|---|---  
Tax entity| Pass-through| Separate entity| Pass-through  
Tax rate| Partners' individual/corporate rates| 17% \(with exemptions\)| Individual rates \(0–22%\)  
SUTE/PTE| Not available| Available| Not available  
Liability| Limited| Limited| Unlimited  
Double taxation| No| No \(one-tier dividends\)| No  
Personal reliefs| Yes \(individual partners\)| Only on director salary| Yes  
When LLP Makes Sense

  * **Professional services:** Law firms, accounting practices, and consultancies where partnership structure is traditional
  * **Low profit per partner:** If each partner's share is below ~S$80K, personal rates may be lower than corporate rates
  * **Personal reliefs:** Partners can claim personal reliefs against their share of LLP income
  * **Simplicity:** No requirement for annual accounts filing with ACRA \(unless revenue > S$5M\)

Key Takeaways

  * ✓ LLPs are tax-transparent — partners pay tax, not the LLP
  * ✓ Individual partners pay personal income tax; corporate partners pay corporate tax
  * ✓ No SUTE or PTE exemptions available for LLPs
  * ✓ LLPs offer liability protection but not the same tax benefits as Pte Ltd
  * ✓ Best suited for professional services and partnerships with moderate profits

What To Do Next Compare the total tax payable under LLP vs Pte Ltd for your expected profit level. For a detailed comparison, see our [Sole Prop vs Pte Ltd guide](/business-structure/sole-prop-vs-pte-ltd) \(the Pte Ltd analysis applies to LLP comparisons too\). For the big picture, visit [taxinfo.sg](https://taxinfo.sg/tax-for-business-owners). [Related GuideSole Prop vs Pte LtdTax comparison of the two most common structures.](/business-structure/sole-prop-vs-pte-ltd) [Related GuideDirector Fees TaxHow directors of Pte Ltd are taxed differently.](/business-structure/director-fees-tax) [Related GuideCorporate Tax RateThe 17% rate and exemptions LLPs don't get.](/tax-rates/corporate-tax-rate) [TaxInfo HubTax Guide for Business OwnersOverview of all business structures and taxes.](https://taxinfo.sg/tax-for-business-owners)