Diverted Profits Tax
This Tax Information and Impact Note is about the new Diverted Profits Tax on certain large multinational enterprises with business activities in the UK.
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This measure will introduce a new tax on diverted profits. The Diverted Profits Tax will operate through 2 basic rules. The first rule counteracts arrangements by which foreign companies exploit the permanent establishment rules. The second rule prevents companies from creating tax advantages by using transactions or entities that lack economic substance.
Further guidance has been published at Diverted Profits Tax: guidance