Can I use the same exchange rate to calculate my companys profit in sterling, and to calculate the tax payable in euro?
A. No. The exchange rate at payment is NOT linked to the exchange rate you must use for your tax calculations. The exchange rate used for tax calculations is a historical rate, but the exchange rate used for a payment is the one in force at the time of that payment. Once your tax liability has been calculated in sterling, it will remain the same whether you chose to pay in sterling or in euro.
Related Questions
- What exchange rate do I use to convert my sterling tax and National Insurance liabilities into a euro amount for payment?
- What exchange rate should I use to convert euro accounts and computations into sterling to complete the tax return?
- How Do We Calculate A Companys Historical Operating Profit Margin?
