Taxation (Multinational - Global and Domestic Minimum Tax) Rules 2024

CHAPTER 1 - PRELIMINARY ETC  

PART 1-3 - CURRENCY CONVERSION  

SECTION 1-25   FOREIGN CURRENCY TRANSLATION - GENERAL  
General foreign currency translation

1-25(1)    
Subsection (2) applies for the purposes of computing an amount under this instrument in relation to an MNE Group for a Fiscal Year, if the amount:

(a)    is denominated in a currency other than the reporting currency of the Consolidated Financial Statements of the Ultimate Parent Entity of the MNE Group (the relevant reporting currency ); and

(b)    is not converted to the relevant reporting currency in the course of preparing the Consolidated Financial Statements; and

(c)    is not an amount to which subsection (4) applies.

1-25(2)    
Convert the amount to the relevant reporting currency using the foreign currency translation principles of the Authorised Financial Accounting Standard that would have been used to convert the amount to the relevant reporting currency if that conversion were undertaken in the course of preparing the Consolidated Financial Statements for the Fiscal Year.

Foreign currency translation for materiality or other threshold

1-25(3)    
Subsection (4) applies for the purposes of determining if a materiality or other threshold mentioned in subsection 12(4) or section 35 of the Act, or in this instrument, that is denominated in Euros is satisfied or exceeded by an amount in respect of a Group, Entity or jurisdiction for a particular Fiscal Year.

1-25(4)    
If the amount is denominated in another currency, convert the amount from that currency to Euros using the average of the daily rates of exchange, in respect of the 2 currencies for the month of December included in the Fiscal Year immediately preceding the particular Fiscal Year, as quoted by:

(a)    the European Central Bank; or

(b)    if the European Central Bank does not quote a daily rate of exchange in respect of the 2 currencies - the Reserve Bank of Australia; or

(c)    if both the European Central Bank and the Reserve Bank of Australia do not quote a daily rate of exchange in respect of the 2 currencies - a source specified in a determination under subsection (5) .

1-25(5)    
For the purposes of paragraph (4)(c) , the Minister may, by legislative instrument, make a determination specifying a source quoting rates of exchange.