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HMRC internal manual

International Manual

From
HM Revenue & Customs
Updated
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Description of double taxation agreements: Non-discrimination

The object of this Article is to ensure that one country does not give less favourable taxation treatment to nationals of the other country who are residents of that other country than it gives to its own non-resident nationals. Thus a national and a resident of the other country would, if he had United Kingdom source income, be entitled to make a claim under ITA07/S460 (3) (see RE1710), in the same way as a non-resident British subject could. Some agreements may also provide that similar treatment is given to a resident of the other country even though he may not be a national of that country.

Other provisions in this Article require that

  • a permanent establishment in one country of an enterprise of the other country is not to be less favourably taxed in the first country than an enterprise of that first country carrying on the same activities, and
  • enterprise’s of one country which are wholly or partly owned or controlled by residents of the other country are not to be subjected to more burdensome taxation than other similar enterprises of the first country are subjected to.