Sending over $10k to the Philippines: Tax laws to know | finder.com
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Tax guidelines and regulations for large money transfers into Philippines

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

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 $14,000 will need to be reported in the Philippines, too.

How the Philippines regulates large remittances

The Philippines is currently undergoing tax law reforms. In 2018, the first package of the Tax Reform for Acceleration and Inclusion Act, or TRAIN Act, was enacted. However, at the time of writing (January 2019), the Republic of the Philippines Bureau of Internal Revenue has not yet finished updating their website, and information on necessary tax forms for large gifts is not available.

Can I still transfer money to the Philippines?

Yes. You can still transfer money to the Philippines. According to the Department of Finance, money being sent home by Filipinos working and living abroad will not be taxed under the new plan, though large gifts not sent to a dependent child may be subject to a donor tax. We will update this page with more information as soon as it becomes available.

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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 willfully 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 can I send?

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

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6 Responses

  1. 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?

    • finder Customer Care
      JoshuaJanuary 1, 2019Staff

      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

  2. 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

  3. 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?

    • finder Customer Care
      AdrienneFebruary 20, 2017Staff

      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 recommend is World First (click here to read our review about them). 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. Here’s our article on IRS requirements for large transfers.

      Best regards and congrats on your vacation home!

      Adrienne

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 FINDER to send your first transfer 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

Minimum transfer: $5,000. For larger transfers, take advantage of no transaction fees and no maximum send limits.

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