CurrencyTransfer
- Get the best foreign exchange rates available from this online marketplace
- Fast 1-2 day delivery to bank accounts
- Price-match guarantee if you find a better price elsewhere
Finder makes money from featured partners, but editorial opinions are our own. Advertiser Disclosure
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.
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 $7,100. Transfers over $10,000 from individuals also need to be reported under the latest 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.
1 - 20 of 20
{"niche":"USFMT"}
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 a government-issued photo ID or a transaction confirmation number to receive your funds — this is particularly likely if you’re sending cash.
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.
Picture: Shutterstock
More guides on Finder
-
Tax guidelines and regulations for large money transfers into Thailand
You’ll likely need to file with the IRS, and your recipient may have to pay a gift tax.
-
Tax guidelines and regulations for large money transfers into Japan
Your recipient may need to pay taxes on a large remittance, and you’ll likely need to report it.
-
Tax guidelines and regulations for large money transfers into Colombia
Transferring large sums into Colombia can come with more paperwork and potential taxes than other countries.
-
Tax guidelines and regulations for large money transfers into South Africa
Your recipient won’t be on the hook for any taxes, but there may be limits on how much you can send.
-
Tax guidelines and regulations for large money transfers into South Korea
Large transfers to South Korea may result in your recipient paying tax on the amount.
-
Tax guidelines and regulations for large money transfers into the UK
Learn about taxes on transfers of $10,000 or more — including penalties and exceptions.
-
Tax guidelines and regulations for large money transfers into Nigeria
What tax laws apply to you and your recipient when transferring large sums to Nigeria.
-
How much money can be transferred from USA to India?
Avoid potential headaches and tax issues with our guide to sending $10,000 or more to India.
-
Tax guidelines and regulations for large money transfers into Canada
Protect yourself and save time with this tax and documentation guide on sending large amounts of money to Canada.
-
Tax guidelines and regulations for large money transfers into Italy
Need to send $10,000 or more to Italy? Protect yourself from penalties and save time with our tax and documentation guide.
Ask an Expert
