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HMRC internal manual

International Manual

Non-residents trading in the UK: permanent establishment: domestic and treaty law: Introduction


This part of the guidance concentrates on the concept of permanent establishment. 

In accordance with the flow chart (see INTM262100) a non-resident company must have a domestic permanent establishment (PE) before a domestic charge is triggered.  However, in order to consider domestic PE it is vital that simultaneous consideration is given to treaty law (see INTM261020) as well as the commentary to Article 5 (see INTM264200 about the importance of treaty law and the commentary).  The domestic law definition of permanent establishment follows very closely the OECD model tax treaty.