INTM225700 - Controlled Foreign Companies: Entity Exemptions: Chapter 13 - The Low Profit Margin Exemption: contents

The low profit margin exemption is an entity-level exemption aimed at those CFCs that perform substantial (in terms of volume) but relatively low value added functions outside the UK such as:

• back-office functions,
• local marketing and distribution operations,
• toll manufacturing, or
• call or data- processing centres.

Any CFC that satisfies the low profit margin exemption, does not need to be included in a chargeable company’s corporation tax return.

1. INTM225750

   Introduction
2. INTM225800

   The Basic Rule
3. INTM225850

   Anti-Avoidance
4. INTM225900

   Example