SARS has published updated average exchange rates for key foreign currencies to assist taxpayers with 2025 income and expenditure conversions.
The South African Revenue Services (SARS) released updated Average Exchange Rates on 3 June 2025, providing essential data for calculations. The update includes rates for the Australian dollar, Canadian dollar, Euro, Hong Kong dollar, Indian rupee, Japanese yen, Swiss franc, UK pound, and US dollar.
The term “average exchange rate” is defined in section 1(1) of the Act and means, in relation to 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. This rate must be applied consistently within that year of assessment.
The publication comprises Table A, listing the average exchange rates of selected currencies for a year of assessment from December 2003 onwards, and Table B, which provides monthly average exchange rates. Table B is designed to assist individuals whose year of assessment is either shorter or longer than 12 months. These rates are used to convert foreign income or expenditure into South African rand for tax purposes.
The Income Tax Act, 1962, provides specifically that certain amounts expressed in a foreign currency must be translated into rand by the application of an applicable average exchange rate.
The South African Reserve Bank (SARB) determines weighted average exchange rates, based on the foreign exchange transactions of commercial banks. SARS publishes these rates on a quarterly basis, which may be used by stakeholders (taxpayers) in the determination of the average exchange rate when required in the Act.
