3. Our partnership business had an assessed loss in the previous year of assessment and one of the partners, who is an individual, retired at the end of that year. In this regard, can the share of the loss allocated to the partner who retired be used to set off the profits of the partnership of this year and subsequent years?

3. Our partnership business had an assessed loss in the previous year of assessment and one of the partners, who is an individual, retired at the end of that year. In this regard, can the share of the loss allocated to the partner who retired be used to set off the profits of the partnership of this year and subsequent years?

Where an individual incurs a share of a loss in a business carried on by a partnership and does not choose Personal Assessment for that year of assessment, the amount may be carried forward and set off against his/her share of the assessable profits from the partnership business in subsequent years of assessment until it is fully set off.

However, any remaining balance of the loss lapses if the partner retires before the loss is fully set off, i.e. the balance cannot be utilized to reduce the subsequent profits of the partnership.

Please note that you are required to inform the Business Registration Office of any admission or retirement of partners within 1 month of such change. You may use the Form I.R.B.R.64 as provided by the Inland Revenue Department.