In the case of a non-resident company which is resident in an EEA territory (“the relevant territory”), an amount meets the EEA tax loss condition in relation to the relevant territory in so far as conditions A and B are met.

Condition A is that the amount is calculated in accordance with the applicable rules under the law of the relevant territory for determining, in the case of the company, the amount of any loss or other amount eligible for relief from any tax under the relevant territory.

Condition B is that, for the purposes of corporation tax, the amount is not attributable to a UK permanent establishment of the company.

“UK permanent establishment”, in relation to the company, means any permanent establishment through which it carries on a trade in the United Kingdom.

For the meaning of tax under any territory outside the United Kingdom, see paragraph 17.