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Average Exchange Rates

06 June 2012   (0 Comments)
Posted by: SAIT Technical
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SARS Legal & Policy

The term "average exchange rate” is defined in section 1 of the Income Tax Act, 1962, (Act No. 58 of 1962) (the Act), to mean in relation of a year of assessment the average exchange rate determined by using the closing spot rates at the end of daily or monthly intervals during a year of assessment, which must be consistently applied within that year of assessment.

The South African Reserve Bank publishes weighted average exchange rates, based on the foreign exchange transactions of commercial banks, on a quarterly basis.  These rates may be used in the determination of the average exchange rate as required in the Act and are supplied on this web page to enable stakeholders (taxpayers) to use it for this purpose. 

Note:  These average exchange rates do not represent spot rates for purposes of the Act.The use of these average exchange rates is not compulsory.  Stakeholders using average exchange rates which differ from 
those published by SARS must, however, keep record of all calculations for audit purposes.The tables of the average exchange rates are updated on a quarterly basis. 

The Act provides specifically that certain amounts expressed in a foreign currency be translated into Rand by the application of the applicable average exchange rate.

Click here for a list of the average exchange rates of selected currencies for a year of assessment as from 
December 2003.

Click here for a list of the monthly average exchange rates to assist a person whose year of assessment is 
 shorter or longer than 12 months.

Click here for an example on how to calculate average exchange rates for a period longer than 12 months.


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