Explanatory note

This Order, made pursuant to subsection (1) of section 582A of the Income and Corporation Taxes Act 1988 (“section 582A” and “the Taxes Act” respectively), re-enacts the International Organisations (Miscellaneous Exemptions) Order 1991 (S.I. 1991/1694) and the International Organisations (Miscellaneous Exemptions) Order 1992 (S.I. 1992/2655) (“the 1991 and 1992 Orders”) with amendments which are entirely of a drafting nature to take account of the legislative changes made by the Finance Act 1996.

Article 2 of this Order provides for the international organisations mentioned in that article to be designated for the purposes of subsections (2) and (4) to (6) of section 582A and subsection (4) of section 118B of the Taxes Act; and article 3 provides for the international organisations mentioned in that article to be designated for the purposes of subsection (5) of section 582A and subsection (4) of section 118B of the Taxes Act. Article 4 of this Order revokes the 1991 and 1992 Orders.

This Order enables certain payments made by or on behalf of the international organisations mentioned in articles 2 and 3 to be made without the obligation on the part of the payer to deduct or account for tax in respect of the payment. The payments in question are those referred to in subsections (2) and (4) to (6) of section 582A and in section 118B(4) of the Taxes Act, and comprise certain annuities and other annual payments, certain payments to sub-contractors and certain payments of rents, royalties, dividends and interest.