Income tax return for a limited partnership owner for 2024

1. What is a limited partnership?

A limited partnership is a form of company with:

• Managing partners: They run the company and are jointly and severally liable.
• Limited partners (silent partners): They only contribute capital, are not involved in business operations and have limited liability.

📌 More about the limited partnership (resume)

2. Who files an income tax return — and how?

2.1 Managing partner

As a managing partner, you are usually an income tax entrepreneur. You must then profit from the company enter it in your income tax return, just like a company or sole proprietorship.

2.2 Limited partner

A limited partner is not an entrepreneur in a tax sense. You enter your income from the resume as income from other activities or if result from posting — depending on how you are involved.

📌 Income from the company or result from other activities?

3. How do you determine whether you are an entrepreneur?

Or you as managing partner If you are an entrepreneur for income tax purposes, it depends on the known criteria:

• You make a profit (or actively strive for it)
• You work independently
• You have multiple clients
• You run entrepreneurial risk
• You comply with the hour criterion (at least 1,225 hours per year)

Do the Entrepreneur Check from the tax authorities to determine whether you qualify as an entrepreneur.

4. What income do you specify?

Managing partner:

You give share in the profit of the resume listed as “company profit”. This profit distribution is often regulated in the company contract.

📌 Calculate company profit

Limited partner:

You enter your return (for example, interest or a profit distribution) as:

• Results from other activities, or
• Result from posting (for example, if you rent something to the resume)

📌 Results from other activities - explanation

5. Deductions for managing partners

As a managing partner (and income tax entrepreneur), you can benefit from:

5.1 Self-employed deduction

Worked at least 1,225 hours in your company?

📌 Self-employed deduction

5.2 Starter deduction

Within the first 5 years of your entrepreneurship, applicable a maximum of 3 times.

📌 Starter deduction

5.3 SME profit exemption

14% of your profit is tax-free, after deducting other items.

📌 SME profit exemption

Note: these deductions apply not for limited partners, because they are not entrepreneurs for income tax purposes.

6. How do you file a resume as a partner?

Step 1: Gather Your Data

• Resume financial statements
• Your share of profit
• Any business costs or investments
• Private information, such as mortgage and other income

Step 2: Sign in to My Tax Office with your DigiD

Step 3: Choose the right type of income

• Managing partner: choose “profit from a company”
• Limited partner: choose “result from other activities”

Step 4: Fill in everything, including deductions (if applicable)

Step 5: Check your declaration carefully

Errors or omissions may result in corrections or fines.

7. Preliminary assessment or payment in installments?

After submitting, you will receive a provisional or final assessment. Do you have to pay extra and can't you do it all at once? You can request a payment arrangement.

📌 Request or amend a preliminary assessment

8. Tips for limited partnerships

• 📝 Clearly lay everything down in the contract — especially the distribution of profits and tasks
• 📋 Be clear about the role of each partner for tax purposes
• 💼 Make sure your administration is clear for both the resume and each partner
• 💡 Use accounting software or get assistance from an accountant
• 💰 Set aside money for the tax bill — avoid surprises

Lastly

Doing business through a limited partnership requires a clear division of roles — even when filing taxes. Managing partners are usually entrepreneurs for income tax purposes and can make use of tax benefits. Not limited partners, but they are obliged to report if they receive income from the resume.

Do you have questions? Check the entrepreneur page of the tax authorities or consult with your accountant.

Good luck with your report!