Diverted profits tax

UK tax - anti-avoidance.

(DPT).

A UK tax applied at a rate of 25%.

The DPT applies 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
• Double taxation
• Financial Transaction Tax
• Permanent establishment
• Tax avoidance
• Transfer pricing

Other links

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