Income Tax Act 2007 section 979

Designated international organisations: exceptions from duties to deduct

Section 979 exempts certain payments made by Treasury-designated international organisations from the normal requirements to deduct income tax at source.

• The Treasury may designate any international organisation of which the UK is a member for the purposes of this exemption
• Designated organisations (and partnerships including them) are exempt from deducting tax from payments of yearly interest, annual payments, patent royalties and other intellectual property payments
• The exemption also covers payments caught by the tax avoidance provisions requiring deduction at source
• Manufactured interest and manufactured overseas dividend payments made by designated organisations are likewise exempt from deduction requirements