Page 9 - P6 Slide Taxation - Lecture Day 5 - Foreign Exchange
P. 9
Section 25D
- Not applicable to exchange items.
- Only applicable to underlying items (e.g. asset, trading stock , income)
- NORMAL RULE: Convert the underlying item to Rand by applying the
spot rate on the date that the:
→ expenditure/loss is incurred; or
→ that the amount was received.
- RULE OF EXCEPTION: Only NP or trust ≠ trade may
ELECT: to rather apply the average exchange rate for the
yoa.
- Person receives/incurs an amount ≠ R and is attributable to PE
outside RSA?
→ Convert the functional currency to R @ average exchange rate.
*Ignore s 25D(2A) (4) (5) (6) (7) Not part of SAICA syllabus!
