TLDR: To declare income in foreign currency, use the exchange rate on the day of receipt or the annual average rate from the Banque de France. These rules apply to taxpayers fiscally domiciled in France.
General Rules
To declare income in foreign currency, you must convert it into euros. Two methods are accepted:
- Exchange rate on the day of receipt or crediting to a foreign account: This is the general rule. [S002] [S004] [S005]
- Annual average rate: This is a practical rule allowed for income received during a given year. [S002] [S005] [S008]
Taxpayers Concerned
These rules apply to taxpayers fiscally domiciled in France with foreign-source income. Foreign-source income may be excluded from the tax base under international double taxation conventions or if the beneficiary is not domiciled in France. [S002] [S005] [S008]
Income Conversion
Income received outside France and expressed in a currency other than the euro must be converted into euros using the exchange rate of the relevant currency in Paris on the day of receipt or crediting to a foreign account. [S002] [S004] [S005]
As a practical rule, it is accepted that income received during a year may be converted based on the annual average exchange rate of the relevant currency in euros, determined from the exchange rates on January 1 and December 31 of the previous year, as set by the Banque de France. [S002] [S005] [S008]
Conversion Examples
For example, if the exchange rate of the euro in Swiss francs was 1.2024 Swiss francs per euro on December 31, 2014, and 1.0835 Swiss francs per euro on December 31, 2015, the annual average rate of the euro in Swiss francs for 2015 would be 1.1429 Swiss francs per euro. [S008]
Exceptions
Foreign-source income may be excluded from the tax base under international double taxation conventions or if the beneficiary is not domiciled in France. [S002] [S008]
Clarifications
It is not specified whether the exchange rate must be that of the Banque de France or the ECB for the annual average rate. Official sources refer to Banque de France data for historical values. [S002] [S008]
Conclusion
The conversion of income in foreign currency must be carried out using either the exchange rate on the day of receipt or the annual average rate published by the Banque de France. These rules apply to taxpayers fiscally domiciled in France.