The gains or profits of a partnership are determined following the general provisions of taxing a business.
The gains thereof are then assessed on the individual partners having distributed amongst the partners by giving each:
- remuneration payable by the partnership
- interest payable by the partnership (interest on capital) less interest payable by the partner to the partnership (interest on drawings)
- Share of profits as per the agreed profit-sharing ratio
Medical costs or medical insurance costs is allowable as an expense of the partnership subject to Sh. 1 Million per partner