Revenue Note for Guidance
This section provides the meaning for a disregarded permanent establishment.
(1) Disregarded permanent establishment
A disregarded permanent establishment is a presence in a territory –
essentially, some or all of the profits or gains of the permanent establishment go untaxed.
(2) As this section requires the anti-hybrid rules to be applied to foreign corporate structures the terms domestic tax and foreign tax need to be modified and specifically defined for the purposes of this section.
“domestic tax” means a tax chargeable on profits or gains, in the head office territory, that is similar to income tax, corporation tax (including a charge under Part 35B) or capital gains tax;
“foreign tax” means a tax chargeable on profits or gains, in the permanent establishment territory, that is similar to income tax, corporation tax (including a charge under Part 35B) or capital gains tax.
Relevant Date: Finance Act 2019