International Manual

INTM226050 - Controlled Foreign Companies: Entity Exemptions: Chapter 14 - The Tax Exemption: Introduction

The tax exemption is an entity level exemption and so the profits of the CFC are exempt from the CFC charge if this exemption applies for a CFC바카라 사이트檚 accounting period (see INTM248150 for the definition of a CFC바카라 사이트檚 accounting period).

The tax exemption will apply where the 바카라 사이트渓ocal tax amount바카라 사이트� (see INTM226150) is at least 75% of the 바카라 사이트渃orresponding UK tax바카라 사이트� (see INTM226250). This requires comparison of the actual tax paid on the profits of the CFC in its territory of residence with what tax would have been paid if the profits had been subject to UK taxation on a UK measure of profits. This amount is arrived at following the application of various adjustments and assumptions including the corporation tax assumptions at Chapter 19 (see INTM239300).

This exemption cannot apply if the CFC바카라 사이트檚 territory of residence cannot be determined under the general rule for establishing residence. The rules for determining this are provided in chapter 20 (see INTM242200).

Any CFC that satisfies the tax exemption, does not need to be included in a chargeable company바카라 사이트檚 corporation tax return.