I have an offshore transactional bank account into which I transferred cash into. To clarify, the currency is in Australian Dollars. Also, I do not earn any income on this account nor do I earn any income from abroad. With that said, the interest rate for this account is set at zero on the deposits made. What I would like to know is, would I in this case need to pay tax on any currency movements while the cash is in the account and if that is the case, how would this work if I make payments from that account and the account balance changes during the financial year?
There would be no tax payable on the currency fluctuations unless, you are actively trading in the currency. Lastly, there would only be tax payable on the interest (above the minimum threshold), but it seems like there will be no interest earned.
Get SARS Tax Dates and Deadlines in your Inbox
We'll tell you when you need to file, along with tax tips and updates.