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| Thread ID: 108203 | 2010-03-18 06:51:00 | Foreign exchange bank accounts. | Nomad (952) | PC World Chat |
| Post ID | Timestamp | Content | User | ||
| 868257 | 2010-03-18 06:51:00 | Hi, does anyone know how these accounts are taxed? ie., a NZ bank account that you hold place foreign currency. For a normal savings account, they just take the interest you earnt and tax you at your tax rate. What happens to FX accounts? Do they calculate the rate you bought and many months later the rate that you sold it? There is no interest earnt in the account by the way. Cheers. |
Nomad (952) | ||
| 868258 | 2010-03-18 07:06:00 | Dunno. Possibly ask Hone Kii. He used to be an FX expert in a previous existence. And still knows something about it now ;) | WalOne (4202) | ||
| 868259 | 2010-03-18 12:07:00 | Its treated like any other bank account I believe. If there is any interest then it will be taxed as you are holding it in a NZ Bank (I assume). If you sell it then again there will be no tax because NZ doesn't have a capital gains tax (yet). Ask your bank and they will inform you more. |
beeswax34 (63) | ||
| 868260 | 2010-03-18 12:22:00 | Who knows? Laws may change by the day. The laws may change to avoid loopholes in previous law. |
Sweep (90) | ||
| 868261 | 2010-03-18 21:30:00 | Its treated like any other bank account I believe. If there is any interest then it will be taxed as you are holding it in a NZ Bank (I assume). If you sell it then again there will be no tax because NZ doesn't have a capital gains tax (yet). Ask your bank and they will inform you more. I'm quite sure if you are classed as a trader, you are expected to declare your income via foreign exchange trading on your income tax return each year. If you fail to submit a return, it constitutes income tax avoidance. If you aren't a trader, as beeswax has said, you don't need to do anything as there is no capital gains tax :) |
utopian201 (6245) | ||
| 868262 | 2010-03-18 22:16:00 | I ain't sure but I don't think you will earn interest on a foreign currency account... There is no exchange rate on them, if you have a greenback account, it's a greenback account. You get out what you put in, so it protects you from currency fluctuations. What I do know is that most banks require a decent sum for an FC account, ASB requires 10,000 USD minimum for an account. |
Cato (6936) | ||
| 868263 | 2010-03-19 02:02:00 | Yep there is no interest. The Oz has thou v little. Was thinking along the lines of buy and sell rates after ... if and how that is taxed. |
Nomad (952) | ||
| 868264 | 2010-03-19 02:53:00 | If you will be trading with the banks, you will make little money, unless you have a massive investment since they will always have their margins, but that's my opinion... As someone said, NZ doesn't have Capital Gains Tax anyway, so I wouldn't be worried... |
Cato (6936) | ||
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