Commentary

D2.715 Exemptions

Corporate tax
Corporate tax | Commentary

D2.715 Exemptions

Corporate tax | Commentary

Companies avoiding a UK taxable presence

D2.715 Exemptions

Where the DPT charge may arise under the avoided PE rule1 there are exemptions which mean that the charge will not arise if:

  1.  

    (a)     both the avoided PE and the foreign company (or the foreign company and another person that has arrangements with the foreign company) are small or medium-sized enterprises (as defined at D2.705) and the tax avoidance condition (D2.717) is not met under the avoided PE DPT rule2

  2.  

    (b)     the avoided PE is 'excepted', in other words:

    1.  

      (1)     its activity is such that the foreign company would not be treated as carrying on a trade in the UK through a permanent establishment as a

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