Buying an apartment in Guangzhou, starting a business in Beijing or studying in Shanghai can require sending large money transfers to China. Before you move your money out of Canada, learn more about whether China taxes large cash remittances.
How China regulates large remittances
When sending money to China, you may be concerned about potential gift taxes. The good news is that China is one of the few countries that doesn’t levy an inheritance or gift tax on cash sent into the country.
However, this may not stay the same in the future. China announced in 2017 that it’s considering imposing inheritance and gift taxes in the next few years. We’ll update this space as details trickle in.
Do I have to report large transfers out of Canada?
You personally won’t have to report any amount of money you transfer out of Canada. The bank or money transfer company you use will do this for you. They are required to report any suspicious transfers or transfers over $10,000 to FINTRAC (the Financial Transactions and Reports Analysis Centre of Canada).
How will my recipient receive my remittance in China?
The process of receiving a money transfer in China depends largely on your provider and how you’ve marked it for delivery. Your recipient may need to provide government-issued photo ID or a transaction confirmation number to receive your funds.
If they have an account with a Chinese bank or money transfer company, they may not need to provide this information every time you send money.
DISCLAIMER: This article is general advice. It does not consider your own personal circumstances and may not be applicable to you. You should obtain professional advice and consider your own situation before acting on anything contained in our article.
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