Taxation (International and Other Provisions) Act 2010 section 75

Two or more establishments treated as a single establishment

Section 75 provides that where a foreign territory taxes the combined profits of two or more overseas permanent establishments together, those establishments are treated as a single establishment for the purposes of calculating double taxation credit relief.

• Where a foreign territory charges tax on the profits of two or more overseas permanent establishments taken together, those establishments are treated as one single overseas permanent establishment for double taxation credit relief purposes.
• This aggregation applies for the purposes of the credit relief rules in sections 72 to 78, which govern how relief is calculated for foreign tax paid on permanent establishment profits.
• Certain provisions are excluded from this aggregation treatment: section 73(2) (carry forward and carry back of unrelieved foreign tax), section 75 itself, and section 77 (claims for relief).
• The rule ensures that UK credit relief calculations mirror the way the foreign territory treats the establishments, avoiding the need to artificially separate profits that the overseas jurisdiction taxes as a single amount.