Income Tax Act, 1962 (Act 58 of 1962)
Tenth Schedule: Oil and Gas Activities
4. Foreign currency gains or losses
|(1)||Currency gains or losses of an oil and gas company during any year of assessment (regardless of whether those gains or losses are realised or unrealised) must be determined solely with reference to-|
(a) the functional currency of that company; and
(b) the translation method used by that company for purposes of financial reporting.
|(2)||Any amount received by or accrued to, or expenditure incurred by, an oil and gas company during any year of assessment in any currency other than that of the Republic must be-|
(a) determined in the functional currency of that company; and
(b) translated to the currency of the Republic by applying the average exchange rate for that year.
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