Which exchange rate do I use to declare earned income during 2008 that was paid into a foreign bank account? There is a government site with a number of documents on exchange rates available:

http://www.ictax.admin.ch/2008/de/index.html

...and I think that either "Devisen - Banknoten" or the "Devisen - Jahresmittelkurse in der Schweiz" would apply. I note that the two documents list quite different rates, with the Banknoten rates being advantageous to me. But I don't want to use it if in fact I should be using Jahresmittelkurse.

Likewise, which rate do I use to declare my year-end foreign bank balance as wealth?

BTW, my situation is uncomplicated, no investments, shares or anything like that, just earned income paid into a foreign account.

All advice much appreciated!

Year end balances "banknoten rate", income and expense "jahresmittelkurs".

D

Assets at year-end: Use the "Devisen-Kurs". That is standard practice.

Regular monthly income: The average "Jahresmittelkurse" sounds logical. I am unsure, however.

Attach a calculation sheet to your return. Then the tax office can review your algorithm and amend if necessary.

Banknoten rate is applicable if you have physical paper currency. Assets in a bank account are "Devisen".

The "Noten" rate is usually lower because of the money-changers' commission.

By Devisen Kurs for year-end balance, do you mean the exchange rate as it stood on 31. December? I see the page I linked to provides this in a column on the right of the page.

Were talking about the official tax fx rate. My tax software (SZ canton's) comes up with the "Noten" fx rate regardless of the type of asset I designate, ie for EUR 1.47955 at 31.12.08

D

The lower "Noten" rate is better for the tax payer. Therefore worth using.

My bank issues me an year end statement with all other currencies converted to Swiss Francs. So I just submit that.

I think we are cross puposes..

The OP asked what rate to use for income and yera end balances.

admin.ch publishes two official lists "devisen -noten" and "jahresmittelkurs", to be used for balances and income respectively. http://www.ictax.admin.ch/2008/de/index.html

The "devisen - noten" list has two values, and you are right for money at the bank use the devisen first column. You dont have the choice to use the second better rate unless you have cash. For GBP the two were 1.530278 and 1.455000. The average rate was 1.997136

D