Corporation Tax Act 2010 section 1141

Permanent establishments of companies

Section 1141 defines what constitutes a "permanent establishment" of a company in a territory for corporation tax purposes, covering both fixed places of business and agents acting on behalf of the company.

• A company has a permanent establishment in a territory if it has a fixed place of business there (such as an office, branch, factory, mine, or building site) through which its business is wholly or partly carried on.
• Alternatively, a permanent establishment exists if an agent acting on behalf of the company habitually exercises authority in that territory to do business on the company's behalf.
• The definition applies in both directions: it determines whether a non-UK company has a permanent establishment in the UK, and whether a UK company has a permanent establishment overseas.
• Certain exceptions apply under sections 1142 to 1144, which set out circumstances where a permanent establishment does not exist even though the basic conditions appear to be met.