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21/04/2008, 14:35 greyman Joined on 06/01/2008 Perigord Blanc 24 Posts 97 Official exchange rate for French tax return As I have some UK earnings to enter on my (first year) French tax return, I understand I can either convert at the exchange rate applicable on each day I received my earnings in the UK or I can use an official average 2007 rate. Given the relentless downward trend in the latter half of 2007 I assume the average rate will probably be lower than the actual rate calculation. My questions are - am I correct in believing  I can use an average and, where do I find it ? I've searched on www.impots.gouv.fr with no luck. Hope someone can point me in the right direct on both scores. Thanks. BTW, as a former accountant in UK I am glad to escape the annual filing panic on 31 January, 10 months after the tax year end, only to find myself dealing with a 5 month deadline with the forms only available a few weeks prior ! Certainly focusses the mind. I wonder how the French accountants handle the rush ? It is what it is....    Report

21/04/2008, 15:12 Sunday Driver Joined on 07/10/2005 Deux Sevres (79) Posts 3,172 Re: Official exchange rate for French tax return According to the the French Impots: Revenus encaissés en monnaie étrangère Si les revenus ou bénéfices en cause ont été encaissés en monnaie étrangère, ils doivent être déclarés pour leur contre-valeur en euros, calculée d'après le cours du change à Paris au jour de l'encaissement (réception en espèces, inscription au crédit d'un compte, etc.) So it's the exchange value on the day of receipt. However, the practicality of retrospectively calculating this for regular income such as pensions means that local tax offices may normally consider accepting the official exchange rate as at the end of the tax year, or they may set their own rate.  If you want to use an overall rate, then you'd best confirm it with them first, given that the rate as at 31.12.2007 was £1 = 1.362 Euro and using that figure would clearly result in an underdeclaration.     Waddya mean it's only Saturday......    Report

21/04/2008, 15:16 greyman Joined on 06/01/2008 Perigord Blanc 24 Posts 97 Re: Official exchange rate for French tax return Thanks SD. I'll check locally. As an accountant an officially sanctioned underclaration would be music to my ears It is what it is....    Report

21/04/2008, 16:38 ali-cat Joined on 15/12/2005 Charente Maritime Posts 1,113 Re: Official exchange rate for French tax return SD Can you advise what rate to use if the bulk (90%) of your monthly income was transferred via a currency broker at a pre-arranged rate?  Last tax return I used this rate as it was the rate I actually obtained rather than the month by month rate or officially sanctioned annual average.  As for returns on investments - last return I used the official average annual rate. Mr Cat     Many years ago, cats were worshipped as gods. Cats have never forgotten this.    Report

21/04/2008, 17:45 Sunday Driver Joined on 07/10/2005 Deux Sevres (79) Posts 3,172 Re: Official exchange rate for French tax return Bear in mind that the taxable event occurs on the day you actually receive your income from its source, so that's when the exchange rate applies.  In practical terms, if your income is transferred here as soon as you receive it, and the currency broker provides you with a note detailing the euro amount of each monthly transfer, then that should suffice for your declaration. However, if you receive your income into a UK bank account then wait to consolidate your monies before transferring them in bulk, then that pre-arranged exchange rate will be deemed 'after' the taxable event and therefore may not be valid. My bank (CA) sends me an avis d'operation internationale on the day my UK pension hits my account directly from the provider.  It shows the amount received in euros as well as their exchange rate and my local tax office accept this euro deposit as the declarable amount. They are also happy for me to use that same exchange rate to convert that month's UK bank interest.     Waddya mean it's only Saturday......    Report

21/04/2008, 19:09 Graham & Brenda Joined on 23/08/2004 Charente Posts 296 Re: Official exchange rate for French tax return SD, I wonder if you could give your opinion on my situation? I receive my pension in the UK in sterling. I deliberately incur much of my French expenditure on a UK credit card which is settled monthly. For French taxes and utilities I cash a fixed sum each month and pay it into my French bank account. The Impots will require me to convert my pension income into euros. Should I use the 12 monthly rates or the end of year rate? My only concern is that I do it in the most correct manner to avoid queries at a later date.   Thanks, Graham (16)    Report

21/04/2008, 19:41 Ron Avery Joined on 29/11/2004 Aveyron 12 Posts 3,393 Re: Official exchange rate for French tax return Not SD he is having a liedown before May 1st  G&B asked  "The Impots will require me to convert my pension income into euros. Should I use the 12 monthly rates"  As SD said, you use the rate applicable when you received your income, so your proposal to use the 12 monthly rates sounds a very good idea to me and it will to the tax man.  As long as the rate that you use is reasonable and you do not try and take the proverbial you will not get any queries. Why not post a sensible answer, people will appreciate it more    Report

21/04/2008, 22:14 Mikew Joined on 23/08/2004 Aigre 16 Posts 283 Re: Official exchange rate for French tax return I had a browse thro' my last years Nationwide statements looking for exchange rates on or just after first of month (pension paid on first), The average was 1.46567. I wonder how far that will be from the figure given out by the local Impots/ official rate.    Report

22/04/2008, 8:08 Bugsy Joined on 15/11/2006 Vienne (86) Posts 4,175 Re: Official exchange rate for French tax return This is a useful site for exchange rates. HERE "Life is Short - Forgive Quickly - Love Truly - Laugh Uncontrollably........ and get yourself an Apple Mac".    Report

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