INTM550590 | Hybrids: definition of key terms: permanent establishment

The meaning of permanent establishment for Part 6A TIOPA 2010 is widely drawn. It includes anything that is a permanent establishment within the meaning of s1119 CTA 2010, or within the meaning of any similar concept outside the United Kingdom.

S259BF(2) specifically widens the definition of a permanent establishment by including any overseas concept of a permanent establishment not based on Article 5 of the Model Tax Convention on Income and Capital published by the Organisation for Economic Cooperation and Development.

A permanent establishment is not a hybrid entity under the definitions in Part 6A TIOPA 2010. Instead. there are rules at Chapters 6, 8 and 10 that apply where certain mismatches involving a permanent establishment arise.