Sending large money transfers to China: Tax laws to know | finder.com
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Tax guidelines and regulations for large money transfers into China

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China doesn’t have a gift tax — but the US does.

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, no matter how much you’re transferring in. If you’re transferring money for a purchase, they’ll report it just like they would any other business income.

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    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 money you can send to China. However, some transfer providers will limit how much you can send. If you’re planning on making a large transfer, check to make sure you’re using a provider who will allow it XE is a secure provider with no limit on money transfers.

    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. Using a reputable provider can safeguard you from potential scams.

    Frequently asked questions

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    US International Money Transfers Offers

    Important Information*
    XE Money Transfer

    Transfer up to $500,000 with no minimums and no fees.

    WorldRemit International Money Transfers

    Use promo code 3FREE to send your first 3 transfers with no fee. Send to 110+ countries for bank-to-bank deposit, cash pickup or mobile top-up.

    TransferWise

    Enjoy high maximum transfers into more than 20 currencies while saving up to 90% over local banks.

    CurrencyTransfer

    Exclusive: Minimum transfer of $1,000 for Finder readers (normally $5,000).
    For larger transfers, get no transaction fees and no maximum send limits.

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