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HMRC internal manual

Double Taxation Relief Manual

HM Revenue & Customs
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Ivory Coast: Permanent establishment

The Permanent establishment Article (Article 5) does not have, in the list of activities which are deemed not to constitute a permanent establishment, the normal exclusion of the maintenance of a fixed place of business solely for the purpose of purchasing goods or merchandise or of collecting information for the enterprise. So if a United Kingdom enterprise has a fixed place of business in the Ivory Coast whose sole function is to acquire raw materials, semi-finished or finished products, any merchandise, materials, tools or other supplies for the enterprise, that place of business will constitute a permanent establishment.

The taxable profits in the Ivory Coast will be the amount of commission which the enterprise would have had to pay to an independent agent for transactions of a similar kind to those carried out by the permanent establishment, less the operating costs of the permanent establishment and any other expenses allowable in accordance with Article 7(3). If accounts providing sufficient information are not available, the Ivory Coast may determine the profits by taking a percentage of the total amounts involved, less the expenses in accordance with Article 7(3). Credit may be given for the Ivory Coast tax charged on either basis against the United Kingdom tax on the same income.