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Tax guidelines and regulations for large money transfers into Philippines

Failing to report large transfers can cost both you and your recipient.

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Regardless of whether you’re sending cash or a direct bank deposit, transfers over $10,000 need to be reported to the US government, and transfers over ₱250,000 will need to be reported in the Philippines, too.

How the Philippines regulates large remittances

Throughout 2018 and 2019, the Philippines imposed stricter tax guidelines on gifted money. Gifts of over ₱250,000 — or about US$5,002, will be taxed at a rate of 6%. The donor is responsible for filing BIR form 1800, regardless of whether or not they reside in the Philippines.

The new laws also don’t have different tax brackets based on your relationship to the recipient. Gifts to relatives are taxed at the same rate as gifts to friends. Though certain types of gifts, like gifts to some charities, are exempt.

Check with a tax professional if you’re unsure if you need to file and/or you need help filing your tax returns.

Compare providers for your next large transfer to Philippines

Our table lets you compare the services you can use to send money abroad. Compare services on transfer speeds and fees, then click Go to site when you're ready to send.
1 - 14 of 14
Name Product Filter Values Fastest Transfer Speed Fees (Pay by Bank Transfer)
OFX
24 hours
$0
OFX has no maximum limit transfers, with competitive exchange rates for 45+ currencies.
CurrencyTransfer
24 hours
$0
CurrencyTransfer lets you shop around for the best exchange rate on its online marketplace.
Wise (TransferWise)
Within minutes
From 0.41%
Wise uses the mid-market rate and transparent fees to help you send money in 45+ currencies.
OFX International Money Transfers (Business)
24 hours
$0
Business customers: Send safe, no-limit transfers with no fees and competitive exchange rates.
CurrencyTransfer for Business
24 hours
$0
Increase business efficiency with zero transaction fees and same-day transfers.
Currencies Direct
24 hours
$0
CurrenciesDirect makes transferring money abroad simple with bank-beating exchange rates. Currencies Direct may call you to confirm your transfer, so be prepared for a phone call shortly after initiating a transfer.
Currencies Direct (business)
24 hours
$0
Minimizes costs of international transactions and offers custom solutions for business clients. Currencies Direct may call you to confirm your transfer, so be prepared for a phone call shortly after initiating a transfer.
Xe
Within minutes
$3
Xe has fast transfers with low fees and a range of foreign currency tools.
Xe Money Transfer for Business
24 hours
$0
Save your time and money with Xe Money Transfer for business.
MoneyGram
Within minutes
From $0
First online transfer is free.
MoneyGram has fast cash pick-up transfers to more than 350,000 agent locations worldwide.
Cash App
Within minutes
From $0
With this peer-to-peer payment app make payments to your friends and family with no transfer fees within the US or from the US to the UK or EU.
Instarem
24 hours
From 0%
New Instarem customers will get a special FX rate and zero-fees on their first transfer.
Instarem offers offers rewards on every transaction.
Western Union
Within minutes
From $0
Enjoy $0 fee on your first online transfer. Western Union makes money from currency exchange. Not valid on credit cards or sends to Cuba.
Western Union sends money online to friends and family in 200+ countries and territories around the world.
Airwallex
Airwallex
Within minutes
$0
After spending $15k in your first 90 days, receive a one-time $500 bonus that will automatically be credited to your account on any FX conversion.
Airwallex can help you make business payments to 150+ countries in 60+ currencies.
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What are the penalties in the Philippines if my recipient fails to file?

Failing to file a large remittance can result in steep and complicated penalties. For example, if they owe taxes and miss the April 15th deadline, they can expect to pay 25% of the taxes due, plus 20% annually until the tax is paid. If they even mistakenly fail to include the money they’ve received, they could be found by the tax courts to have wilfully filed a false or fraudulent claim, which comes with a 50% penalty on the tax due.

Do I have to report large transfers out of the US?

You might. If you’re sending more than $10,000, you may need to file:

  • Form 8300. Currency transaction reports need to be filed for all transfers over $10,000. Usually the bank or transfer company will handle this, but if you’re sending money for business purposes you may also need to file.
  • Form 114. If you have a foreign bank account that’s held over $10,000 at any point in the past year, you’ll need to file.
  • Form 709. If you’ve transferred $15,000 or more in the last year intended as a gift, you’ll need to file.

By law, banks report all cash transactions that exceed $10,000 — and any transaction of any amount that alerts their suspicions. Independent money transfer businesses are sometimes required to report amounts as low as $1,000, depending on the circumstances.

Sending a lot of money out of the country? Know what the IRS expects of you.

Must read: How much money can I send to the Philippines?

You can send as much money as you want to the Philippines.

While there is not a legal cap, some transfer providers will set their own limits. If you plan to initiate a large transfer, Xe doesn’t have a maximum transfer limit.

How will my recipient in the Philippines get the money?

Depending on the bank or transfer service you choose, your recipient can pick up the money in cash or have it deposited directly into their account or mobile wallet.

If your friends or family are picking up your transfer in person, advise them to take along ID and any transaction or confirmation number on your receipt.

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.

Send money to the Philippines

Bottom line

Online transfer providers make it easy to send money to the Philippines, but if you’re sending money to a foreign account in your name or more than $15,000 as a gift, you’ll need to let the IRS know — and your recipient may need to include it on their taxes. Before sending money abroad, compare international money transfer companies to make sure you’re getting a fair rate.

Frequently asked questions

Whether products shown are available to you is subject to individual provider sole approval and discretion in accordance with the eligibility criteria and T&Cs on the provider website.

Name Product Filter Values Fastest Transfer Speed Fees (Pay by Bank Transfer)
OFX International Money Transfers (Business)
24 hours
$0
Business customers: Send safe, no-limit transfers with no fees and competitive exchange rates.
Xe
Within minutes
$4
Xe has fast transfers with low fees and a range of foreign currency tools.
MoneyGram
Within minutes
From $0
First online transfer is free.
MoneyGram has fast cash pick-up transfers to more than 350,000 agent locations worldwide.
Instarem
24 hours
From 0%
New Instarem customers will get a special FX rate and zero-fees on their first transfer.
Instarem offers offers rewards on every transaction.
Xe Money Transfer for Business
24 hours
$0
Save your time and money with Xe Money Transfer for business.
Remitly
Within minutes
From $0
Remitly has quick, affordable transfers around the world, with both express and economy options.
CurrencyTransfer
24 hours
$0
CurrencyTransfer lets you shop around for the best exchange rate on its online marketplace.
WorldRemit - 4free
Within minutes
From $0.99
Use promo code 3FREE and pay no fees on your first 3 transfers. Conditions apply.
WorldRemit sends money to 110+ countries for bank-to-bank deposits, cash pick-ups or mobile top-ups.
OFX
24 hours
$0
OFX has no maximum limit transfers, with competitive exchange rates for 45+ currencies.
PayPal (business)
Within minutes
$0
Provides business solutions for small business owners in over 24 currencies worldwide. Try 3 months free of Spotify Premium when you sign up with PayPal.
Wise (TransferWise) International Money Transfers Business
Within minutes
From $8.16
Enjoy high maximum transfers into more than 20 currencies, while saving up to 90% over local banks.
Wise (TransferWise)
Within minutes
From 0.41%
Wise uses the mid-market rate and transparent fees to help you send money in 45+ currencies.
Wise (TransferWise)
Within minutes
From 0.41%
Wise uses the mid-market rate and transparent fees to help you send money in 45+ currencies.
CurrencyTransfer for Business
24 hours
$0
Increase business efficiency with zero transaction fees and same-day transfers.
WorldRemit
Within minutes
From $0.99
Use promo code 3FREE and pay no fees on your first 3 transfers. Conditions apply.
WorldRemit sends money to 110+ countries for bank-to-bank deposits, cash pick-ups or mobile top-ups.
CurrencyFair
24 hours
€3
CurrencyFair has bank-beating exchange rates and fast transfer times on 15+ popular currencies.
OFX
24 hours
$0
OFX has no maximum limit transfers, with competitive exchange rates for 45+ currencies.
CurrencyFair
24 hours
€3
CurrencyFair has bank-beating exchange rates and fast transfer times on 15+ popular currencies.
Remitly
Within minutes
From $0
Special offers like free transfers and better exchange rates available for new customers.
Remitly has quick, affordable transfers around the world, with both express and economy options.
Remitly
Within minutes
From $0
Special offers like free transfers and better exchange rates available for new customers.
Remitly has quick, affordable transfers around the world, with both express and economy options.
Remitly
Within minutes
From $0
Special offers like free transfers and better exchange rates available for new customers.
Remitly has quick, affordable transfers around the world, with both express and economy options.
PayPal
Within minutes
From $0
Use PayPal to safely send money and receive payments from around the world in over 25 currencies with just an email address or mobile number. Try 3 months free of Spotify Premium when you sign up with PayPal.
Xe
Within minutes
$3
Xe has fast transfers with low fees and a range of foreign currency tools.
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6 Responses

    Default Gravatar
    DavidDecember 31, 2018

    I live in the United States and I want to move to the Philippines and how is the best way for me to get my money from America to the Philippines?

      AvatarFinder
      JoshuaJanuary 1, 2019Finder

      Hi David,

      Thanks for getting in touch with finder. I hope all is well with you. :)

      The best way for you to bring your money with you depends on your needs, preference, and budget. Generally, if you are bringing a huge amount of money with you during your travel, you would need to declare it upon leaving. Make sure you also have some documents such as receipts, bank statement, and others to show the source of your fund. When you arrive at the Philippine airport, you must also declare it to the Anti-Money Laundering Council.

      Of course, you may also choose a bank to bank transfer or use an international money transfer service.

      I hope this helps. Should you have further questions, please don’t hesitate to reach us out again.

      Have a wonderful day!

      Cheers,
      Joshua

    Default Gravatar
    MylaOctober 19, 2018

    My boyfriend is sending his money through his deposit account in US to my bank account in the Philippines and the money is of big amount higher than 100,000US Dollar because he want to establish business in the Philippines and planning to migrate here after he process his papers because he is a US Army deployed in Nigeria today. the process is almost 2 months from now because of some delay in sending the required document and some fees . On September 13, 2018 their Bank (Chase Bank) sent me email that the money is already transferred and I should receive it in three working days. They have attached the document to prove that it is already transferred like the Statutory Declaration of Claims and Transfer of Funds (Sworn Affidavit from Claim and Fund Transfer), Certificate of Clearance from Ministry of Finance and Economies US, and Transfer Confirmation Slip. But on September 17, 2018, I receive email from IMF BLOG International Monetary Fund from United Kingdom sending me an STOP Order regarding the fund transfer of my boyfriends money that I did not follow some requirements. they said that I should pay 700US dollar in IMF Head Office at United States within 7 days, so I complied with their requirements. after a few days they send me again message informing that before they made the transfer I should comply with the last requirements which is the 0 percentage tax amounting 3500 US Dolar within 21 days. We find have complied it again through the help of my boyfriend friend in the US and we gave the 3500 US Dollar to IMF United States of America this last Tuesday (October 16, 2018). but after the payment was made we message the IMF but they did not reply me anymore. My boyfriend ask favor to the Chase to follow up the transfer in the IMF Office in United States of America but according to them they just say that we hold on. Our question is why did they did not reply us and is it the process legal or we are already a victim of scammer? We are so worried because there is a lot of money I borrowed just to comply with their requirements.

    Please advised me. thank you

      Default Gravatar
      joelmarceloOctober 25, 2018

      Hi Myla,

      Thanks for leaving a question on finder.

      Another tough one — and therefore popular among scammers — involves a bond with somebody you’ve met online through a dating site. Often, that person wants to immediately leave the site for a more intimate IM or text chat. They may claim to be working overseas with plans to visit soon. Over the course of some time, you’re let to believe there’s a strong connection. And then they ask for you to wire some money.

      Unfortunately it looks like you are scammed and I’m sorry to hear about this. Rule of thumb: Never send money to someone you don’t know.

      Please send me a message if you need anything else.

      Cheers,
      Joel

    Default Gravatar
    PorfirioFebruary 18, 2017

    I am building a vacation house in the Philippines and need to send money to the builder. How can I send dollar amounts larger than $20,000.00? Are there forms that need to be filed to IRS or other US agency?

      AvatarFinder
      AdrienneFebruary 20, 2017Finder

      Hello!

      To send an amount to your builder in an amount higher than $20,000, you have a number of providers you can choose from, one we like is World First. You can also compare providers in the table on this page – all of them allow transfers with no maximum limit.

      What forms you need to file with the IRS depends on how much you are transferring and the value of your accounts overseas. Read our article on IRS requirements for large transfers.

      Best regards and congrats on your vacation home!

      Adrienne

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