Policy paper

Diverted Profits Tax

This Tax Information and Impact Note is about the new Diverted Profits Tax on certain large multinational enterprises with business activities in the UK.

From:
HM Revenue & Customs
Published
10 December 2014

Documents

Diverted Profits Tax

PDF, 26.3 KB, 3 pages

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Details

This measure will introduce a new tax on diverted profits. The Diverted Profits Tax will operate through 2 basic rules. The first rule counteracts arrangements by which foreign companies exploit the permanent establishment rules. The second rule prevents companies from creating tax advantages by using transactions or entities that lack economic substance.

Further guidance has been published at Diverted Profits Tax: guidance

Published 10 December 2014