Introduction Overview Overview Section 1141: Permanent establishments of companies
3257.This section sets out the basic tests for determining whether a company resident in a territory has a permanent establishment in another territory. It is based on section 148(1) and (2) of FA 2003.
3258.This section is not limited to permanent establishments in the United Kingdom of non-UK resident companies but also serves to determine whether a UK resident company has a permanent establishment in another territory. Under DTAs adopting the OECD model convention, primary taxing rights in relation to the profits of a trade carried on by a company resident in the territory of one of the contracting states, through a permanent establishment in the territory of the other contracting state, are accorded to the fiscal authorities of the other contracting state.
3259.Subsection (3) refers to the following three sections which set out circumstances in which there is no permanent establishment, notwithstanding that the conditions in subsection (1) are met.