Corporate tax no longer skips a week over foreign currency
A corporation that touched US dollars or euros without a business in a country using them had its whole weekly corporate tax skipped, in every currency. Each currency is now assessed on its own, and dollars and euros always have a country that taxes them.
Every week, corporate tax is worked out separately for each currency your corporation earned or spent in. Until now, one currency could stop the whole run: if you had any activity in US dollars or euros, ran no business in a country that uses that currency, and were not registered in one, the week was skipped for the entire corporation. No tax was assessed and no loss credit was recorded, in any currency, your home currency included.
That is fixed. From the next weekly corporate tax reconciliation:
- Each currency is assessed on its own. A currency that cannot be assessed no longer holds back the others. - Dollars and euros always have a taxing country. Profit in a currency is taxed where you run a business in a country that uses it. Without one, your registration country taxes it if that is its currency. Otherwise the country that issues the currency does: the United States for the dollar, Germany for the euro. - Losses follow the same rule. A losing week in dollars or euros earns its carry-forward credit with that same country.
For most corporations nothing changes. If you buy on a foreign exchange, hold a foreign bond or pay freight in dollars or euros, your home-currency tax is now assessed every week, as it is for everyone else.
The weekly run does not go back over weeks it skipped before this update.