Sending Money out of the Philippines

[intrepid]

2 minutes ago, hk blues said:

I would imagine the receiving country has jurisdiction over incoming transfers as I doubt the Philippines would want to get involved in that 

Agree on this that PI would not be involved.  But I'm just wondering if the receiving country would require documents or taxes.

[hk blues]

19 minutes ago, intrepid said:

Agree on this that PI would not be involved.  But I'm just wondering if the receiving country would require documents or taxes.

For anti money laundering purposes I'm sure there will be some questions but this will depend on where it's going.  As for taxes - I cannot imagine the answer to this - what kinds of taxes do you imagine would be payable?

[intrepid]

1 minute ago, hk blues said:

As for taxes - I cannot imagine the answer to this - what kinds of taxes do you imagine would be payable?

I have no idea.  So as an example.  A citizen from a country transfers P5M to buy land and house.  Several years later after some improvements, sells the house for P10M.  Now that citizen wants to transfer P10M to their home country.  Is there a capital gains tax or something like that since the money has now doubled?

[Gas]

1 hour ago, insite said:

My question refers to any locally accrued gain and ones ability to remit this as opposed to the original capital brought here.

I have transferred quite a bit of locally earned money to another country on several occasion's over the past 2 years using BDO. Wasn't a problem just took one hour for the payment to be approved by someone at head office. 

They do ask for a TIN number and SSS which i have , but you can also use your passport. 

The transfer fee is 500php and there is a additional charge of 737php for documents! 

 

[hk blues]

13 minutes ago, intrepid said:

I have no idea.  So as an example.  A citizen from a country transfers P5M to buy land and house.  Several years later after some improvements, sells the house for P10M.  Now that citizen wants to transfer P10M to their home country.  Is there a capital gains tax or something like that since the money has now doubled?

I'm confused - Capital gains will be payable here in the Philippines rather than the country you're sending the money to.  

[insite]

CGT is paid on the transfer of the property at a rate of 6% - it can often form part of the sale negotiating price , as to who pays it.

In truth although called CGT it is not a tax on any gain but a flat tax on the sales price of the property.

I would like to think that on the sale of a single property one would be in a position to consider this your principal private residence allowing one to remit the capital and gain if the documents were in order - perhaps my optimism is misplaced.

Were it the case this that this was being done on a reoccurring basis it most likely would be deemed a business and taxed in the regular manner.

I did read somewhere quiet some time back about an allowance of two houses a year before this became the case - I will try search it out again.

[hk blues]

3 minutes ago, insite said:

I would like to think that on the sale of a single property one would be in a position to consider this your principal private residence allowing one to remit the capital and gain if the documents were in order - perhaps my optimism is misplaced.

 

Certainly in the UK the sale of your principal residence is not subject to CGT but here, i don't know if they're going to pass up the chance to earn tax revenue! 

[Gas]

15 minutes ago, insite said:

CGT is paid on the transfer of the property at a rate of 6% - it can often form part of the sale negotiating price , as to who pays it.

In truth although called CGT it is not a tax on any gain but a flat tax on the sales price of the property.

I would like to think that on the sale of a single property one would be in a position to consider this your principal private residence allowing one to remit the capital and gain if the documents were in order - perhaps my optimism is misplaced.

Were it the case this that this was being done on a reoccurring basis it most likely would be deemed a business and taxed in the regular manner.

I did read somewhere quiet some time back about an allowance of two houses a year before this became the case - I will try search it out again.

Have you actually met someone who has payed 6% CGT on a 10 million peso property in Laguna?  

What is the assessed value on the property?  

I think you might be overthinking the whole process, as what is written is never followed when it comes buying or selling in the Philippines. 

 

 

Edited September 16, 2020 by Gas

[hk blues]

8 minutes ago, Gas said:

Have you actually met someone who has payed 6% CGT on a 10 million peso property in Laguna?  

What is the assessed value on the property?  

I think you might be overthinking the whole process, as what is written is never followed when it comes buying or selling in the Philippines. 

 

 

Probably...but the poster wants to send the proceeds out of the country so may come up against the question of CGT when he tries to explain where the money came from - maybe.

 

[Gas]

2 hours ago, hk blues said:

Probably...but the poster wants to send the proceeds out of the country so may come up against the question of CGT when he tries to explain where the money came from - maybe.

 

Without saying too much we or should i say my wife sold some land last year and the money was sent to our daughter in Australia. There was no mention of CGT and looking at the form she didn't even fill in the section that asks the 'Purpose/Reason' for sending. 

As you mentioned in a earlier post the best option is to go in and ask at the bank. We have used BDO and Metrobank to move money abroad and it is much easier at BDO.

Edited September 16, 2020 by Gas