Page 70 - P6 Slide Taxation - Lecture Day 4
P. 70

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.
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