I'm not sure if I'm doing this correctly. There are two ways for calculating foreign income for tax returns. Either Table A or B. I have bank in the US because some of the clients are allowed to pay into the US bank, not South African bank. I also use this to park the fund until it is right time to transfer the fund. The invoices I sent to the foreign clients are all in foreign currency.
Here is the publication for Average Exchange Rates (in terms of the Income Tax Act, 1962). I put the right amount in ZAR (after exchange) when the foreign amount is paid directly into South African banking account. I use Table A to calculate the income received on 22 June 2011 but I have to use the exchange rate ending February 2012 (R 7.4402) which is higher than the actual exchange rate in June 2011. It is not fair since it will push the annual turnover higher (hence higher income tax). I already spent the amount I received in foreign currency way before the tax year ended (29 February 2012).
Since this is not compulsory then I'm willing to use monthly averaged exchange rate for June 2011 instead of averaged annual exchange rate ended on 29 February 2012."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."
Am I correct?