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Home / Simons-Taxes /Corporate tax /Part D4 Overseas issues /Division D4.8 Double taxation relief for companies /Exempt overseas income / D4.802A Permanent establishment exemption—transitional rules
Commentary

D4.802A Permanent establishment exemption—transitional rules

Corporate tax

The permanent establishment exemption regime is deferred in circumstances where there is a total opening negative amount (essentially a loss of the PE) at the beginning of the first accounting period for which the election would otherwise have had effect1. Where there is such a loss, the relevant profits of the PE (if any) are not exempt; they are matched against the opening negative amount until the loss is extinguished2.

This rule generally applies on a global basis but provision

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