• Label 8O – functional currency chosen

    Label 8O is where you show your chosen FC using the three-letter code from the international standard ISO 4217 – 'Currency codes'. See the list of commonly used currencies and their ISO standard codes.

    Labels 8N and 8O must be completed by:

    • Australian resident taxpayers who use FC to work out their taxable income or tax loss
    • foreign residents carrying on an activity or business at, or through, an Australian permanent establishment, who use FC to work out their taxable income or tax loss.

    You should not complete labels 8N and 8O if you are an Australian resident taxpayer using FC only to work out the attributable income of a controlled foreign company (CFC) or transferor trust.

    Examples for labels 8N and 8O

    The following are examples of correctly completed labels 8N and 8O. The exchange rates used are from 26 September 2003.

    Label

    Applicable functional currency

    N
    O

    .6695
    USD

    US Dollar

    N
    O

    77.18
    JPY

    Yen

    N
    O

    1.1385
    NZD

    New Zealand Dollar

    N
    O

    785.8
    KRW

    Won

    N
    O

    5679.
    IDR

    Rupiah

    Label 13 U and Label 13 V

    As mentioned previously, if you choose to use FC, you should account for the value of any carry-forward losses using that FC.

    The value of those tax losses and net capital losses carried forward to later income years should be reported in A$ at 'Losses information' – labels 13U and 13V – on the company tax return.

    Calculation statement

    The calculation statement on the company tax return shows you how to work out the amount of tax payable or refundable. It starts with the 'Taxable income' figure at label A. This figure should have been worked out earlier, using the applicable FC and then translated into A$.

    Other figures in the calculation statement are either of the following:

    • A$ amounts, such as pay as you go (PAYG) instalments raised
    • amounts translated into A$ previously, such as any foreign income tax offset.
      Last modified: 01 Mar 2016QC 17626