Specifics of taxation of partnerships

For income/corporate income tax purposes, the profts of a
partnership are allocated to the partners in proportion to their
interest in the business (transparency principle). The partners’
income from the partnership is then subject to income tax (in
the case of an individual) or corporate income tax (in the case
of a corporation) at the appropriate tax rate, unless the taxpayer
elects fat-rate taxation. Flat-rate taxation may only be elected by
individuals.

The flat rate of 28.25% (plus solidarity surcharge) is
applicable to retained profts. Later distribution of these profts
triggers an additional tax of 25% (plus solidarity surcharge).