Taxes Consolidation Act 1997 section 267G

Interpretation (Chapter 6)

Section 267G provides the definitions and interpretation rules for Chapter 6, which implements the EU Interest and Royalties Directive (Council Directive 2003/49/EC) eliminating withholding tax on cross-border interest and royalty payments between associated companies in different EU Member States.

• The section defines key terms used throughout the chapter, including "interest", "royalties", "permanent establishment", "company of a Member State", and "associated company".
• Two companies are treated as associated if, for an uninterrupted period of at least two years, one directly controls at least 25% of the voting power of the other, or a third company directly controls at least 25% of the voting power in each of them.
• A permanent establishment of a company in a Member State is treated as the beneficial owner of interest or royalties where the underlying asset is held by that establishment and the income is subject to tax in that Member State.
• Unless the context indicates otherwise, terms used in this chapter carry the same meaning as in the Directive.