INTM489863 | Diverted Profits Tax: customer engagement with HMRC: Advance Pricing Agreements do not extend to Diverted Profits Tax

DPT is a separate, stand-alone charge on diverted profits. It is not income tax, capital gains tax, or corporation tax and is not covered by double taxation treaties. Consequently, it is not possible to make it the subject of bilateral Advance Pricing Agreements (APAs).

Part 5 of TIOPA 2010 does not provide for unilateral APAs in relation to DPT, nor is there any other formal clearance procedure. However, it is anticipated that the potential for a DPT charge in relation to the covered transactions will be considered in the APA assessment process alongside transfer pricing and/or permanent establishment issues.