Grappling with complexities

Stuart Pibworth examines the UK rules to determine whether a non-UK tax resident company has a UK permanent establishment

Over recent years the taxation of permanent establishments (PEs) has been subject to close domestic and international attention and so become an increasingly important topic for global business. This heightened focus has necessitated global businesses (re)considering whether their operating structures give rise to PEs and any resulting tax implications.

This article provides a practical overview of the circumstances in which a non-UK tax resident company (Non-ResCo) has a PE in the UK (UKPE), the UK tax consequences of having a UKPE and the impact of Action 7 of the OECD BEPS project.

Taxation of UKPEs

Non-ResCo is subject to UK corporation tax (CT) if: