UK tax exemptions for multilateral development bank

The Inter-American Investment Corporation (Immunities and Privileges) Order, SI 2022/1344, grants various immunities and privileges, including various exemptions from UK taxation, to the Inter-American Investment Corporation its officers and employees. The tax exemptions include:

• within the scope of its official activities, exemption from all taxation on the corporation’s assets, property, income, operations and transactions;
• a general relief from VAT;
• relief from business rates; and
• exemption from customs and excise duties.

Employment income paid by IIC to its employees is also exempt from income tax in the UK, except in relation to employees who are British citizens.

Granting the immunities and exemptions is part of the UK’s compliance with its obligations under Article 7 of the Agreement establishing the Inter-American Investment Corporation to which the UK will become party when it joins the ICC.

The ICC itself provides development finance to countries across Latin America and the Caribbean and was established by 45 countries in the 1980s.