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Income Tax Act 2007

Definitions and related matters - Currency conversion

YF 2: Other rules for currency conversion: approved alternatives

You could also call this:

“ Using approved alternative rates for converting foreign currency to NZ dollars ”

When you need to convert money from another currency to New Zealand dollars, there are usually specific rules about how to do it. Sometimes, these rules are found in different parts of the law, not just in section YF 1.

If you have to follow one of these other rules to change money into New Zealand dollars, the Commissioner might give you another option. They can set a special exchange rate that you can use instead of the usual rule. This special rate is called a “representative conversion rate”.

You can choose to use this special rate from the Commissioner if you want to, but you don’t have to. It’s just another choice you have when changing money into New Zealand dollars for tax purposes.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM3228409.

Topics:
Money and consumer rights > Taxes
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Part Y Definitions and related matters
Currency conversion

YF 2Other rules for currency conversion: approved alternatives

  1. This section applies when—

  2. a provision other than section YF 1 provides a rate or method for currency conversion; and
    1. for the purposes of the provision, a person is required to convert an amount expressed in a currency other than New Zealand currency.

      1. The Commissioner may set a representative conversion rate that the person may use, instead of the rate or method referred to in subsection (1)(a), in converting the amount into New Zealand currency.

      Notes
      • Section YF 2: added (with effect on 1 April 2008), on (applying for the 2008–09 and later income years), by section 119(1) of the Taxation (Annual Rates, Trans-Tasman Savings Portability, KiwiSaver, and Remedial Matters) Act 2010 (2010 No 109).