Tax on local based foreign currency accounts

How is tax caculated on a local foreign currency account. Example: Savings of $100. Worth R1000 but worth R1200 due to currency changes at end of year. And also interest of R50.

Do you receive this money into your local account or is it only kept in foreign accounts?

Thank you for prompt reply. It is only kept in local foreign account with a local bank. It is some of the money from my locally earned salary which gets deposited in my local cheque account which I just transfer to the foreign currency account which a service provided by the same local bank. The money is converted to dollars in that account. Aim is just to save basically in a currency other than the rand.

Also I am a government employee with a persal number. So I believe the salary earned has had tax deducted already. I basically transfer a small amount from my cheque account to the foreign currency account.

So essentially the only money you earn in that account is a foreign exchange and interest? You did not earn actual income in a foreign currency?

Thats correct. There is no actual income in foreign currency. I am querying about the general fluctuations in the currency exchange and interest. Its it treated as a capital gain? Or is only the interest taxable?

Unless you are buying and selling the foreign currency then you will not be taxed on the movements, similar to share trading, you won't be taxed on the changes until you have disposed of the item. However cash is not subject to capital gains tax anyway and unless you are a trader then only the interest would be taxable at the average exchange rate SARS provides each year.

Thank you for the excellent service you provide.

Regards

Only a pleasure!