Completing your T2 return – Functional currency

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Completing your T2 return – Functional currency

Corporations filing in functional currency should continue to use the standard CRA-produced T2 return and schedules or a CRA-approved commercial software package. You must file form T1296, Election, or Revocation of an Election, to Report in a Functional Currency, in order to submit a functional currency return.

Line 079

On line 079, indicate the functional currency used.

Line 840

On line 840, enter all instalment payments you made for the tax year in Canadian currency.

Fixed amounts

Fixed amounts on the return must be converted to functional currency, using the exchange rate on the first day of the tax year. When determining the small business deduction limit, convert the $11,250 used to calculate amount E and the $10,000,000 used to calculate the amount at line 415.

Note

Use the Bank of Canada daily exchange rate, to 4 decimal places, of the particular day. If the particular day is before March 1, 2017, use the noon rate. If no rate is quoted, use the rate from the closest preceding day for which a rate is quoted.

Date modified:
2017-04-28