diff --git a/src/components/MoneyRequestConfirmationList.tsx b/src/components/MoneyRequestConfirmationList.tsx
index 57b2905f5e15..6d153dd56183 100755
--- a/src/components/MoneyRequestConfirmationList.tsx
+++ b/src/components/MoneyRequestConfirmationList.tsx
@@ -332,19 +332,14 @@ function MoneyRequestConfirmationList({
 
     const shouldShowTax = isTaxTrackingEnabled(isPolicyExpenseChat, policy, isDistanceRequest, isPerDiemRequest);
 
+    // Update the tax code when the default changes (for example, because the transaction currency changed)
+    const defaultTaxCode = getDefaultTaxCode(policy, transaction) ?? '';
     useEffect(() => {
-        // Set the default tax code when conditions change
-        if (!shouldShowTax || !transaction || !transactionID) {
+        if (!transactionID) {
             return;
         }
-        const defaultTaxCode = getDefaultTaxCode(policy, transaction);
-        const currentTaxCode = transaction.taxCode ?? '';
-
-        // Update tax code if it's different from what should be the default
-        if (defaultTaxCode !== currentTaxCode) {
-            setMoneyRequestTaxRate(transactionID, defaultTaxCode ?? '');
-        }
-    }, [customUnitRateID, policy, shouldShowTax, transaction, transactionID]);
+        setMoneyRequestTaxRate(transactionID, defaultTaxCode);
+    }, [defaultTaxCode, transactionID]);
 
     const isMovingTransactionFromTrackExpense = isMovingTransactionFromTrackExpenseUtil(action);