Guide to functional currency rules

The electronic version of this document is the only authorised version. Printed copies may be out of date.

About this guide

Read this guide to find out more about the functional currency rules, including:

• eligibility requirements
• the implications for tax accounting and tax reporting.

You can use this guide if you are an Australian resident or a non-resident with a permanent establishment in Australia and both of the following apply:

• you keep your accounts solely or predominantly in a particular foreign currency
• you wish to work out your taxable income (or tax loss) using that foreign currency - that is, using your 'applicable functional currency'.

This guide does not cover:

• income from overseas permanent establishments of resident taxpayers
• income attributable to offshore banking units, controlled foreign companies (CFC) or transferor trusts.