Closing Date | Value of Liability in EUR | Value of Liability in USD | Profit by reducing liability in EUR
31.12.2020 | 100.000 | 100.000 | 0,00
31.12.2021 | 95.000 | 100.000 | 5.000
31.12.2022 | 92.500 | 100.000 | 2.500
Liability EUR 5000 | to | Other operating income EUR 5000
Financial Statement Date | Value of Liability in EUR | Value of Liability in USD | Cost (Loss) by Increase of Liability
31.12.2022 | 92.500 | 100.000 | 0,00
31.12.2023 | 102.500 | 100,000 | 10,000
Other operating expenses EUR 10,000 | to | Liability EUR 10,000
Foreign currencies play a role from a tax perspective, especially in the valuation of claims and liabilities. Commercial and through § 5 (1) sentence 1 EStG also the tax law norms provide the so-called foreign exchange spot mean exchange rate at the respective closing date as a basis for valuation. Foreign exchange trading, i.e. the purchase and sale of foreign currencies with a profit intention on the one hand and in private assets on the other hand, must be distinguished from the mere accounting of a liability. We take a closer look at the most important basics!
Merchants who prepare their annual accounts in accordance with the principles of the Commercial Code (HGB) must do so in German and in the euro (§ 244 HGB). For liabilities, the general valuation principles of §§ 252 continue to apply to the following HGB, so that debts are basically to be recognised with their nominal value in euros. If there is a liability in kind, its market value is decisive.
The principles of commercial law apply via § 5 (1) sentence 1 half sentence 1 EStG also in tax law, insofar as the EStG does not contain any differing valuation provisions. This can be found, for example, with § 6 (1) no. 3 EStG, the central norm for the valuation of liabilities. The following shall apply:
This article does not replace tax or legal advice in an individual case. Facts, current law, jurisdiction, documentation and implementation remain decisive.