Taiwan Clarifies Requirements to Convert to Taiwan Currency in Returns When Using Foreign Currency as Functional and Bookkeeping Currency

Taiwan's Ministry of Finance has issued a notice clarifying the requirement to convert foreign currency used as an enterprise's functional and bookkeeping currency to Taiwan currency (TWD) in annual tax returns. The notice explains that revenue, costs, expenses, and losses must be converted using the annual average exchange rate, calculated from the Bank of Taiwan end of month spot buy rates, rounded to 5 decimal places. The notice also explains that if a transaction occurs in a currency oth…