Taxation (International and Other Provisions) Act 2010 section 259BF

Meaning of "permanent establishment"

Section 259BF defines what "permanent establishment" means for the purposes of the hybrid mismatch rules in Part 6A of the Act.

• A permanent establishment includes anything that qualifies as a permanent establishment of a company under the UK Corporation Tax Acts.
• It also includes anything falling within a similar concept under the law of a territory outside the United Kingdom.
• A foreign concept does not need to be based on the OECD Model Tax Convention definition to qualify.
• This broad definition ensures the hybrid mismatch rules can apply to permanent establishments recognised under both UK and overseas tax systems.