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Tax guidelines and regulations for large money transfers into China

Complex laws can make it difficult to move large amounts of USD into or out of China.

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If you’re sending over $10,000 to China, your recipient won’t have to worry about filling out any extra paperwork. But depending on how much you send and for what purpose, you might be required to let the IRS know.

How China regulates large remittances

China doesn’t levy an inheritance or gift tax on cash sent into the country, which means your recipient won’t have to worry about filling out any extra forms come tax time if you’re sending a gift. If you’re transferring money for a purchase, they’ll report it just like they would any other business income.

But Chinese banks and money transfer companies do have to report any overseas or domestic transfers over 50,000 RMB/CNY, or about $7,000. Transfers over $10,000 from individuals also need to be reported under the new guidelines.

Compare providers for your next large transfer to China

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.
Name Product Filter Values Fastest Transfer Speed Fees (Pay by Bank Transfer) Learn More
OFX
24 hours
$0

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OFX has no maximum limit transfers, with competitive exchange rates for 45+ currencies.
Dunbridge Financial
Dunbridge Financial
24 hours
$0

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Dunbridge Financial offers competitive exchange rates and zero fees on transfers to more than 120 countries.
CurrencyTransfer
24 hours
$0
SPECIAL OFFER ✓ Minimum transfer of $1,000 for Finder readers (normally £5,000)

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Exclusive: Minimum transfer of $1,000 for Finder readers (normally $5,000).
CurrencyTransfer lets you shop around for the best exchange rate on its online marketplace.
XE
Within minutes
$3

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XE has fast transfers with low fees and a range of foreign currency tools.
Wise (TransferWise)
Within an hour
From $2.26

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Wise uses the mid-market rate and transparent fees to help you send money in 45+ currencies.
Instarem
Within an hour
$1

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Use code HAPPY22 to get USD 22 off your first transfer. Valid for transfers over USD 250 and till 31 January 2022. T&Cs apply.
Instarem offers zero transfer fees on all transfers.
Remitly
Within minutes
From $0
SPECIAL OFFER ✓ Free transfers and better exchange rates available for new customers

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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.
WorldRemit
Within an hour
From $1.99

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Use code Take10USD to get $10 off when you spend $20. Valid till 31 January 2022. T&Cs apply.
WorldRemit sends money to 110+ countries for bank-to-bank deposits, cash pick-ups or mobile top-ups.
MoneyGram
Within an hour
From $0

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MoneyGram has fast cash pick-up transfers to more than 350,000 agent locations worldwide.
OFX International Money Transfers (Business)
24 hours
$0

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Business customers: Send safe, no-limit transfers with no fees and competitive exchange rates.
CurrencyTransfer for Business
24 hours
$0

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Increase business efficiency with zero transaction fees and same-day transfers.
Western Union
Within an hour
From $0

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Western Union sends money online to friends and family in 200+ countries around the world.
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Compare up to 4 providers

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

Possibly. All transfers over $10,000 have to be reported to the IRS, but if you’re sending money as an individual, your bank or money transfer provider will take care of that for you. However, if you’re sending over $10,000 overseas on behalf of a business, you’ll need to fill out a currency transaction report.

You’ll also need to tell the IRS if you’re sending money to a foreign account in your name with a balance of $10,000 or more or if you’re gifting $15,000 or more in a year.
Sending a lot of money out of the country? Know what the IRS expects of you.

How much money can I send to China?

There’s no legal limit on the amount of Chinese currency you can send to China. But Chinese citizens do have a limit on how much foreign currency they can convert or purchase per year — US$50,000 as of August 2019. If you’re sending USD to China, the money can be counted towards that limit. The $50,000 a year limit also applies to money being sent out of China.

Chinese nationals and residents also face restrictions on withdrawing USD abroad, which can make it difficult to send money back to China while working overseas.

Specific banks in China may impose additional restrictions on transfers. Because of this, as well as other complex laws regarding foreign investments in China, it’s recommended that you check with not only the transfer provider but also with your recipient’s bank before initiating a transfer.

How can my recipient in China get the money?

Depending on which provider you choose, your recipient can pick up the money in cash or have it deposited directly into their bank account or mobile wallet. Your recipient may need to provide government-issued photo ID or a transaction confirmation number to receive your funds — this is particularly likely if you’re sending cash.

How to send money to China

Bottom line

China’s lack of a gift tax makes it an easy country to send money into. As with all international money transfers, be wary of potential fraud and only send money to people you know. Use a reputable provider to safeguard yourself from potential scams.

Frequently asked questions

I’m interested in starting an import/export business with China. How do I get started?

If you’re interested in becoming a part of the estimated $659.4 billion in goods and services traded between the US and China, start with our guide to starting an import/export business with China for information on startup costs, registering your business and more.

What’s the best way to deal with the IRS when transferring large dollar amounts?

That depends on you. 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.

How do I avoid IRS penalties if I fail to file?

Avoid penalties if you’re able to show the IRS reasonable cause for a failure to file, such as a severe illness, house fire or natural disaster.

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