Tax on money held in offshore account?

Posted 15 October 2019 under Tax Q&A
Jaundre says:
15 October 2019 at 16:02

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?

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TaxTim TaxTim says:
15 October 2019 at 18:43

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.





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