Taxes Consolidation Act 1997 section 835EA

Small or medium-sized enterprise

Section 835EA excludes small and medium-sized enterprises from the transfer pricing rules contained in this Part.

• The transfer pricing rules do not apply in computing the profits, gains or losses of a person who qualifies as a small or medium-sized enterprise for the chargeable period in question.
• The definition of "small or medium-sized enterprise" is based on the Annex to EU Commission Recommendation 2003/361/EC, assessed by reference to staff headcount, annual turnover and annual balance sheet total of the enterprise or, where relevant, its global consolidated group.
• Several modifications are made to the Commission's standard definition, including disregarding the rights of a liquidator or administrator when assessing the size of an enterprise in liquidation or administration.
• This section remains in operation until section 835F is commenced by Ministerial order, at which point SMEs will be brought within the scope of the transfer pricing rules with graduated documentation requirements depending on size.