As a result of the amendment, CIT levied on a general partner for participation in the profits of a limited partnership will be able to be reduced by an amount corresponding to the product of the general partner’s percentage share of the partnership’s profit and the tax due on the partnership’s income. The condition for such settlement will be that the profit is paid to the general partner within 5 years. Significantly, in the case of a general partner earning income from the right to share in profit in more than one company, the right to a deduction will apply to the tax on income earned separately from each of these companies.
