Income Tax Act 2007 section 977

Payments to companies

Section 977 confirms that the obligation to deduct income tax from payments still applies even when the recipient is a company that is not itself chargeable to income tax on the payment, and clarifies what counts as a payment "received by" a company.

• The requirement to deduct sums representing income tax from payments is not affected by the fact that the recipient company is not chargeable to income tax on the payment.
• Payments collected by another person on behalf of, or in trust for, a company are treated as received by that company for these purposes.
• Payments received by a company on behalf of, or in trust for, another person are not treated as received by that company.
• Income tax deducted from payments to companies may be set off against the company's corporation tax liability or against income tax payable under other provisions.