September 27, 2023Dated: | ByMarketing Marketing | Corporate Tax | Federal Tax Authority Decision No. 13 of 2023 Determination of Conditions for Conversion of Amounts Quantified in a Currency other than the United Arab Emirates Dirham for the Purposes of the Federal Decree-Law No. 47 of 2022 on the Taxation of Corporations and Businesses- Federal Tax Authority Decision No. 13 of 2023 As per Article 43 of Corporate Tax Law, all taxable persons must quantify the amounts in the United Arab Emirates Dirham. Any amount quantified in other currencies must convert to AED at the applicable conversion of the Central Bank of UAE. The below methods are allowed to convert foreign currencies to AED Spot Rate- If the accounting system of the taxable person permits to conversion of the transactions to AED at the rate on the date of transaction, the spot rate shall be opted. Monthly Average Rate- If the spot rate option is not practical, the taxable person may opt average monthly exchange rate of the Central Bank of UAE for conversion to AED. Annual Average Rate- If both the above options are not practical, the average annual exchange rate of the Central Bank of the UAE shall be used. Notes:- There should be consistency in selecting the conversion method throughout the year ( Spot Rate, Monthly Average Rate / Annual Average Rate) The taxable person should keep all the relevant documents and details relating to the currency conversion. In case the conversion method is changed by the taxable person during the tax year, the relevant document must be kept along with the reason and rationale. Read More Latest Blogs. Registration Requirement Under UAE Corporate Tax Federal Tax Authority Decision Mastering Annual Account Filing in ADGM: A Thorough Guide Tax Invoice as per UAE VAT Law Different Types of Accounting Practices in UAE