Tax accounting in foreign currency(Taxwatch (Tax news in english))
23-09-2009 13:08
Af
Hans-Henrik Nilausen
Companies that wish to prepare their tax accounting in foreign currency must notify the tax authorities before the beginning of the first accounting year where they wish to deliver accounts in foreign currency.
Apparently many companies are not aware of this so the tax authorities have announced that the deadline for notification has been prolonged until October 31, 2009.
In the denunciation it must be stated which currency and which Central Banks exchange rate that should be applied at the translation into Danish Crowns.
It is a condition to be able to notify before October 31, 2009 that the bookkeeping has been prepared in the currency that should be applied. The company’s taxable income must be exchanged to Danish Crowns according to an average exchange rate for the year.
If the company fails to notify the tax authorities before October 31, 2009, the accounts must be exchanged into Danish Crowns according to the exchange rate at the time of each single transaction.
Questions to this article can be directed to Hans-Henrik Nilausen at HHN@bdo.dk
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