Are Foreign Exchange Gains Taxable?

Since the introduction of s775 the general answer is, yes foreign exchange gains are taxable, and conversely foreign exchange losses are deductible. There are a range of exemptions and elections that can minimise or remove some gains or losses. The rules are relevant to all taxpayers and often have consequences for expats with foreign currency bank accounts or loans.

Converting currency, removing funds from bank accounts or repaying loans (in full or in part) triggers these provisions. Therefore check before you act! For more information, go here.

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s