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Old 20.03.2009, 15:33
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Declaring foreign income: which exchange rate?

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!
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Old 20.03.2009, 21:33
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Re: Declaring foreign income: which exchange rate?

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

D
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Old 20.03.2009, 21:44
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Re: Declaring foreign income: which exchange rate?

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.
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Old 20.03.2009, 21:47
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Re: Declaring foreign income: which exchange rate?

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

D
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.
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Old 21.03.2009, 09:09
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Re: Declaring foreign income: which exchange rate?

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.
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Old 21.03.2009, 19:43
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Re: Declaring foreign income: which exchange rate?

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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.
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

Last edited by dannyt986; 22.03.2009 at 09:55. Reason: Quoted EUR not GBP rate.
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Old 21.03.2009, 21:18
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Re: Declaring foreign income: which exchange rate?

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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 GBP 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.
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Old 22.03.2009, 09:54
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Re: Declaring foreign income: which exchange rate?

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
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Old 16.12.2014, 17:38
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Re: Declaring foreign income: which exchange rate?

Sorry to resurrect an old thread, but if we are declaring foreign pension payments, foreign housing maintenance and also foreign mortgage payments, is that using the same rate as income i.e., Jahresmittelkurs? Logic being negative income?

cheers,
Slayer
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Old 16.12.2014, 17:49
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Re: Declaring foreign income: which exchange rate?

I always used the date of payment day mid rate.
Tax office never said a word.
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Old 17.12.2014, 02:30
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Re: Declaring foreign income: which exchange rate?

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I always used the date of payment day mid rate.
Tax office never said a word.
Cr*p, I had that, and just changed everything to the government figures, LOL. Have only done one other Swiss tax return, for 2012, and I still haven't heard anything from them. Presumably they are working out all the foreign kinks in there, plus my Google translate of the German forms :-). Would have been nice to have the official corrections, so I could use it as a template for this one, but I hear it can take a number of years to get these assessment back.

cheers,
Slayer.
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Old 17.12.2014, 02:47
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Re: Declaring foreign income: which exchange rate?

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Cr*p, I had that, and just changed everything to the government figures, LOL. Have only done one other Swiss tax return, for 2012, and I still haven't heard anything from them. Presumably they are working out all the foreign kinks in there, plus my Google translate of the German forms :-). Would have been nice to have the official corrections, so I could use it as a template for this one, but I hear it can take a number of years to get these assessment back.

cheers,
Slayer.
If you have linguistic challenges and a tax return complicated by foreign assets/investments, why not use a Treuhand/tax consultant to do your return for you? They are surprisingly inexpensive (around CHF300-400, probably, in your case -- much less for uncomplicated returns) and save you endless hours of brainache.
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Old 17.12.2014, 05:52
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Re: Declaring foreign income: which exchange rate?

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If you have linguistic challenges and a tax return complicated by foreign assets/investments, why not use a Treuhand/tax consultant to do your return for you? They are surprisingly inexpensive (around CHF300-400, probably, in your case -- much less for uncomplicated returns) and save you endless hours of brainache.
Because my return is not the cookie cutter one, and therefore the price jumps from a few hundred francs to about a thousand (and open-ended) as soon as foreign assets and shares are mentioned. One accountant even quoted me 2000 chuffs as a 'starting figure' - most refused to deal with me - not overtly which I would respect; they just didn't return my call once they realised I represented actual work. I think the Truehands see us coming a mile away, but I am not impressed - I don't have that sort of money to throw about; I am not an ex-pat but rather a 'self-relocated foreigner'. The Swiss return is not that much more complex than the UK one, which I do quite happily. Once you work out these little things and the language barrier, its more about getting your UK documents together, which a Swiss accountant is clueless about anyway. It is certainly not like the US tax return with its gazillion pages.
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