Taxation (International and Other Provisions) Act 2010 section 78

Meaning of "overseas permanent establishment"

Section 78 defines what an "overseas permanent establishment" means for the purposes of the rules on double taxation relief credits in sections 71A to 76.

• An overseas permanent establishment is a permanent establishment through which a company carries on a trade in a territory outside the United Kingdom.
• Where a double taxation treaty contains a relevant non-discrimination provision, the meaning of "permanent establishment" is taken from that treaty.
• Where a treaty does not contain such a provision, or where unilateral relief arrangements apply, the meaning is taken from the OECD Model Tax Convention (July 2010 version, or any replacement designated by Treasury order).
• A "relevant non-discrimination provision" is one that requires a permanent establishment of a foreign enterprise not to be taxed less favourably than domestic enterprises carrying on the same activities.