Part 6Exempt income

Chapter 9Other income

Interest and royalty payments

759The person making the payment

1

This section supplements condition A in section 758.

2

It applies in a case where a company is resident in one territory and has a permanent establishment in another territory.

3

The permanent establishment (and not the company) is to be treated as the person making the payment so far as (within the meaning of Article 1(3) of the Directive) the payment represents a tax-deductible expense for the permanent establishment in the territory in which it is situated.