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TheWhiteKnight

Buying House/Lot - DST tax on US Dollar wire transfers?

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TheWhiteKnight

Purchasing a house and lot for my father. He doesn't have an account yet and I only have a SPA to complete the house purchase. That being said I need to get his funds over here to make the payment. I'm going to open a USD account at BPI and have him wire transfer the money to it so I can get it exchanged (might just exchange it at BPI - kinda scared to use any 3rd parties but maybe).

Does any one know if they take the 0.15% tax off USD wire transfers like they would at Western Union ?

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Davaoeno

I wired usd here many times. I have never been charged tax.  [ most times BDO even waived the $5 fee].

My bank manager [ who is now VP of 23 BDO branches in Davao ] set me up with a 3rd party company. They actually deposited the pesos into my account before i transferred the usd to them ! That really surprised me.  And last month when i bought usd from them the same thing again - they deposited the usd into my account before i transferred the pesos to them . They might be able to refer you to someone in Cebu .

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NOSOCALPINOY

Checkout this site if it meets your satisfaction even though you can only send pesos to the Philippines, but at a good conversion rate at a low service fee at about a $9.99 service fee per every $1,000 sent usually at good competitive conversion rate.

https://transferwise.com/

 

Edited by NOSOCALPINOY

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Jawny

If there is no hurry, a dollar account can be opened with cash and then a bank check can be deposited.  There is usually a hold period, though that can be shortened sometimes for an additional fee .

If you are a USA taxpayer, keep in mind the need to report accounts with more than $10,000 in them.  FBAR report, that is 

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TheWhiteKnight
3 minutes ago, Davaoeno said:

I wired usd here many times. I have never been charged tax.  [ most times BDO even waived the $5 fee].

My bank manager [ who is now VP of 23 BDO branches in Davao ] set me up with a 3rd party company. They actually deposited the pesos into my account before i transferred the usd to them ! That really surprised me.  And last month when i bought usd from them the same thing again - they deposited the usd into my account before i transferred the pesos to them . They might be able to refer you to someone in Cebu .

Thanks.

Yeah, if someone performed first, I'd be willing to. I'm in Pampanga though - more scammers too probably.

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Davaoeno
2 minutes ago, NOSOCALPINOY said:

even though you can only send pesos to the Philippines, but at a good conversion rate

What conversion rate ?  If you send pesos to the Phil you wouldnt need to convert them . And i would never convert pesos to usd anywhere except in the Philippines

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TheWhiteKnight
2 minutes ago, NOSOCALPINOY said:

Checkout this site if it meets your satisfaction even though you can only send pesos to the Philippines, but at a good conversion rate at a low service fee https://transferwise.com/

 

Yes, I love transferwise but can only send P480,000 at a time, I'd need too many transactions, probably also raise some red flags on my account haah.

 

 

1 minute ago, Davaoeno said:

What conversion rate ?  If you send pesos to the Phil you wouldnt need to convert them . And i would never convert pesos to usd anywhere except in the Philippines

They convert for you, and give you the best rate and a really low fee, but the limits are too low.

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NOSOCALPINOY
22 minutes ago, TheWhiteKnight said:

Yes, I love transferwise but can only send P480,000 at a time, I'd need too many transactions, probably also raise some red flags on my account haah.

 

 

Contact them and ask. Won't hurt. I have a BPI USD and Peso account, but I have received money here in the Philippines in pesos and usually the conversion rate and service fees are OK, like I mentioned Transfer Wise when I sent myself money from my U.S. account to my BPI account.  Looks like you already know about Transfer Wise, just trying to help. Anyway, good luck which ever which way you go or from whom ever can give you a better solution sending or receiving money. 

Edited by NOSOCALPINOY

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TheWhiteKnight
22 minutes ago, Jawny said:

If there is no hurry, a dollar account can be opened with cash and then a bank check can be deposited.  There is usually a hold period, though that can be shortened sometimes for an additional fee .

If you are a USA taxpayer, keep in mind the need to report accounts with more than $10,000 in them.  FBAR report, that is 

Yeah I checked all that, it looks like I wont incur any problems for handling this transfer. I will report that account on FBAR (I was going to have to report any new account anyway as I already trigger the FBAR for my SRRV deposit) and the balance will be down to $500 quickly. It also wont cause  me having to file an additional form the IRS showing a huge foreign account as that is only based on the balance at the end of the year.

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TheWhiteKnight
20 minutes ago, NOSOCALPINOY said:

Contact them and ask. Won't hurt. I have a BPI USD and Peso account, but I have received money here in the Philippines in pesos and usually the conversion rate and service fees are OK, like I mentioned Transfer Wise when I sent myself money from my U.S. account to my BPI account.  Looks like you already know about Transfer Wise, just trying to help. Anyway, good luck which ever which way you go or from whom ever can give you a better solution sending or receiving money. 

Yes TW was the first thing I checked, thanks for the suggestion though. I went ahead and emailed them just to see if they can help - I think there are some legal reasons why they have the limits.

 

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NOSOCALPINOY

Also for those who have HSBC accounts in the U.S. and here in the Philippines have a good method of sending and receiving money. 

I'm sure those with HSBC accounts will chime in and give you some good pointers. 

Edited by NOSOCALPINOY

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Jawny
31 minutes ago, TheWhiteKnight said:

Yeah I checked all that, it looks like I wont incur any problems for handling this transfer. I will report that account on FBAR (I was going to have to report any new account anyway as I already trigger the FBAR for my SRRV deposit) and the balance will be down to $500 quickly. It also wont cause  me having to file an additional form the IRS showing a huge foreign account as that is only based on the balance at the end of the year.

Not clear what you refer to, but tax liability and FBAR are not necessarily intertwined.  For FBAR, the $10,000 limit is based upon all foreign accounts combined and the amount only has to exceed $10,000 during the year.  It's not based upon end of year balance. 

In the past, I had several accounts here, and would annually go though the balances and if at any time the combined balance exceeded $10,000, that meant a FBAR report was needed.  I have since eliminated some accounts so I don't have the report to make.  No problem making the report, just a pain to make the effort.

 

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TheWhiteKnight
22 minutes ago, Jawny said:

Not clear what you refer to, but tax liability and FBAR are not necessarily intertwined.  For FBAR, the $10,000 limit is based upon all foreign accounts combined and the amount only has to exceed $10,000 during the year.  It's not based upon end of year balance. 

In the past, I had several accounts here, and would annually go though the balances and if at any time the combined balance exceeded $10,000, that meant a FBAR report was needed.  I have since eliminated some accounts so I don't have the report to make.  No problem making the report, just a pain to make the effort.

 

Once you have to report on any account with FBAR, you need to report all the others and their balance. That's how I read it when I did it anyway. So I already have to report this new foreign account.

Quote

How do I know if I have to file an FBAR?
Check each your non-US bank accounts for the highest balance at any given time between January 1, 2013 and December 31, 2013, even if the balance was only as much for one day.  If the total across all the accounts (the aggregate) is more than $10,000, you must report ALL of them.

 

Regarding the IRS I'm talking about Form 8398 but luckily this wont apply either:

 

Quote

Specified individuals living outside the US:

  • Unmarried individual (or married filing separately): Total value of assets was more than $200,000 on the last day of the tax year, or more than $300,000 at any time during the year.

  • Married individual filing jointly: Total value of assets was more than $400,000 on the last day of the tax year, or more than $600,000 at any time during the year.

 

 

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TheWhiteKnight

Wired the money to my new dollar account from my parents Bank of America login 12 AM PH TIME on Thursday. Still nothing yet in my account ... nerve wracking. But BofA even warned me that PH was on the "Slow-to-pay" list. So who knows when I'll get it, only been about 2-3 banking days depending how you count it.

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billy
On April 14, 2017 at 11:12 AM, TheWhiteKnight said:

Purchasing a house and lot for my father. He doesn't have an account yet and I only have a SPA to complete the house purchase. That being said I need to get his funds over here to make the payment. I'm going to open a USD account at BPI and have him wire transfer the money to it so I can get it exchanged (might just exchange it at BPI - kinda scared to use any 3rd parties but maybe).

Does any one know if they take the 0.15% tax off USD wire transfers like they would at Western Union ?

No

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