INTM556050 | Hybrids: multinational payee (Chapter 8): conditions to be satisfied: condition C

Condition C of s259HA requires the payer to be within the charge to UK corporation tax for a relevant payment period.

From 1 January 2020 there is an additional subsection to Condition C, which specifies that the condition is also met if the multinational company is

• UK resident for the payment period, and

• under the law of the parent jurisdiction, is regarded as carrying on a business in the permanent establishment (PE) jurisdiction through a PE in that territory, but

• is not regarded as doing so by the law of the PE jurisdiction

The payer is the person who makes a payment.

The relevant payment period is the taxable period of the payer in which an amount may be deducted for a payment or quasi-payment.