I’m operating a non-resident company that conducts some activities in the UK. How do I determine if these activities create a permanent establishment, and what are the tax implications?
Answer by: abdullah-al-naim
2 weeks ago
I’m operating a non-resident company that conducts some activities in the UK. How do I determine if these activities create a permanent establishment, and what are the tax implications?
A non-resident company has a permanent establishment (PE) in the UK if it has:
* A fixed place of business through which the company\’s business is wholly or partly carried on, such as an office, branch, or factory.
* An agent acting on behalf of the company who has the authority to conclude contracts in the UK.
If a PE is established, the company is liable for UK Corporation Tax on profits attributable to that PE. It\’s important to assess the nature and duration of activities in the UK to determine PE status.
