Laws and legal documents when transferring large sums of money into China
We value our editorial independence, basing our comparison results, content and reviews on objective analysis without bias.
But we may receive compensation when you click links on our site. Learn more about how we make money from our partners.
How to deal with tricky taxes when sending money to loved ones and businesses in China.
Buying an apartment in Anshan, starting a business in Beijing or studying in Shanghai can require sending large money transfers to China. Before you move your money out of the US, learn more about whether China taxes large cash remittances.
How China regulates large remittances
When sending money to China, you could be concerned about potential gift taxes. The good news: China is one of the few countries that doesn’t levy an inheritance or gift tax on cash sent into the country.
However, the result of a relaxed socialist economy, China announced in 2017 that it’s considering imposing inheritance and gift taxes in the next few years. We’ll update this space as details trickle in.
Do I have to report large transfers out of the US?
Nearly 20 years after 9/11, the government still pays a lot of attention to money that enters and leaves the US. Which means that if you fail to report a large money transfer to China, it will likely be discovered.
How will my recipient receive my remittance in China?
The process of receiving a money transfer in China depends largely on your provider and how you’ve marked it for delivery. Your recipient may need to provide government-issued photo ID or a transaction confirmation number to receive your funds.
If they own an account with a Chinese bank or money transfer company, they may not be required to provide this information each time you send money.
As with all international money transfers, be wary of potential fraud and only send money to people you know. Using a reputable provider can safeguard you from potential scams.
If you follow the law and submit your legal documentation timely and accurately, you shouldn’t experience hassles with the IRS. If you choose not to follow the law, you may be on the hook for stiff penalties, including jail time.
Penalties can be avoided if you can show the IRS reasonable cause for a failure to file. However, the US does not consider reasonable cause to include information that might be a crime in another country.
How likely would you be to recommend finder to a friend or colleague?
Very UnlikelyExtremely Likely
Thank you for your feedback.
Our goal is to create the best possible product, and your thoughts, ideas and suggestions play a major role in helping us identify opportunities to improve.
finder.com is an independent comparison platform and information service that aims to provide you with the tools you need to make better decisions. While we are independent, the offers that appear on this site are from companies from which finder.com receives compensation. We may receive compensation from our partners for placement of their products or services. We may also receive compensation if you click on certain links posted on our site. While compensation arrangements may affect the order, position or placement of product information, it doesn't influence our assessment of those products. Please don't interpret the order in which products appear on our Site as any endorsement or recommendation from us. finder.com compares a wide range of products, providers and services but we don't provide information on all available products, providers or services. Please appreciate that there may be other options available to you than the products, providers or services covered by our service.