Diverted profits tax

(DPT).

UK.

A proposal for a new UK tax to apply at a rate of 25% from April 2015.

The proposed DPT is designed to apply to large multinational enterprises with business activities in the UK who enter into ‘contrived’ arrangements to divert profits from the UK by avoiding a UK taxable permanent establishment and/or by other ‘contrived’ arrangements between connected entities.

See also

• Base erosion and profit shifting
• Common Consolidated Corporate Tax Base
• Corporation Tax
• Permanent establishment
• Tax avoidance
• Transfer pricing
• Double taxation

Other links

• Action Plan on Base Erosion and Profit Shifting, OECD Publishing, OECD 2013