UK profits and permanent establishments

When a non-UK resident company does business in the UK, it may be subject to UK tax.

For the circumstances in which a non-UK resident company is subject to corporation tax on income or chargeable gains or (unusually) subject to income tax, see Practice Note: When does the UK tax non-resident companies?.

There may also be other tax liabilities in the UK, including VAT, stamp taxes, property taxes and employment taxes. For a checklist-style summary of the questions that will decide whether a non-UK resident company will need to pay tax in the UK (including VAT, stamp taxes, property taxes and employment taxes), see: Whether a non-resident company has to pay UK tax—checklist.

Non-UK resident companies with digital businesses (search engines, social media services and online marketplaces) should also consider the digital services tax. For more information, see Practice Note: Digital services tax—overview.

If a non-UK resident that is liable to pay UK tax is resident in a territory that has a double tax treaty (DTT) with the UK, it is important to check the terms of that treaty to determine