Your question: Is foreign exchange loss tax deductible IRAS?

These are merely notional gains or losses and are therefore not taxable or deductible for tax purposes.

Is loss on foreign exchange deductible?

UK corporation tax and income tax

Exchange gains and losses on such money debts with HMRC are not allowable or taxable.

Are exchange losses taxable?

The Nigerian Companies Income Tax Act does not permit deduction of forex losses that have not been realised. … To the extent that unrealised forex loss is however not tax-deductible in any year of assessment when it has not been realised, the highly exposed companies will face double negative impact.

Is Unrealised exchange loss tax deductible?

For accounting purposes, no distinction is made in the profit and loss account regarding exchange differences that are capital or revenue in nature or those that are realised or unrealised. … Any capital losses arising out of foreign exchange transactions are non-deductible as they are capital in nature.

How do you account for foreign exchange gains and losses?

The unrealized gains or losses are recorded in the balance sheet under the owner’s equity. It is calculated by deducting all liabilities from the total value of an asset (Equity = Assets – Liabilities).

Is foreign exchange loss an operating expense?

Conclusion: Foreign exchange fluctuation gain/loss should be treated as operating profit/loss in nature while computing the profit margin of the assessee as well as of the comparable companies.

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