INTM205020 - Controlled Foreign Companies: exemptions - Exempt Activities Test ('EAT')

Territory of residence

ICTA88/SCH25/PARA5(2)

It is necessary for the purposes of the exempt activities test to establish a single territory of residence for a controlled foreign company. In most cases the territory of residence will have been determined for the purposes of the lower level of taxation test under ICTA88/S749. However where a controlled foreign company has no territory of residence special rules apply.

See INTM202050.