Beta This part of GOV.UK is being rebuilt – find out what this means

HMRC internal manual

International Exchange of Information Manual

From
HM Revenue & Customs
Updated
, see all updates

Action 5 rulings: Types of rulings to exchange: Foreign branch exemptions

IEIM541350: Action 5 rulings: Types of rulings to exchange: Foreign branch exemptions

With foreign branch exemption clearances the issue is generally on whether the conditions for branch exemption are satisfied. One of the most important criteria for the branch exemption rules to apply is whether or not there is a permanent establishment in the foreign jurisdiction.

The determination should be automatically exchanged with relevant jurisdictions under Action 5 and also under DAC.

In accordance with published guidance at INTM281030 HMRC does not as a general rule enter into discussions regarding the attribution of the profits to the permanent establishment when a clearance relating to a foreign branch exemption legislation is sought.

As outlined in the guidance at INTM281030 a foreign branch exemption clearance may concern a number of technical issues, such as capital allowance or capital gains. This would not be exchangeable under Action 5, but if the application concerns a cross-border issue with a cross-border impact then it must be exchanged under the DAC (IEIM550010).