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wondersailor

Documentary Stamps On Transferred Funds

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wondersailor

I was just informed by my girlfriend (who works at a bank) that all money sent into the Philippines has to pay a documentary stamp fee. Never heard of it before and a quick search on the internet only talks of real property transfers paying the fee. Anyone know?

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Woolf
Cgu

Not if is foreign dominated  (also if you send USD to USD account) - there are no fees

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wondersailor

Thanks Woolf. Maybe old news to some but I am transferring funds into the Philippines for first time and had never heard of it. I guess I should have not been surprised.

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to_dave007

My pension comes monthly from HSBC Canada to HSBC Cebu..  never had to pay any doc stamp (or other) fee.

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MickyG

mine from Uk £ to here in peso just the transfer fee

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wondersailor

I guess the consensus is some charge and some don't. I had never heard of it before. Thanks all.

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Cgu
45 minutes ago, wondersailor said:

I guess the consensus is some charge and some don't. I had never heard of it before. Thanks all.

No. Any deposit to a Peso account incurs stamp fee (I think it was increased under TRAIN)...anyway if you transfer from overseas to a peso account it will charged (of course some might only see it as a fee - but if they check the details they will see the charge).

So transfer at the end "everybody" will incur the stamp fee (either transfering direct to a peso or to otherwise when you transfer from your foreign currency account into the peso account - unless you keep in foreign currency)

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RogerDuMond
29 minutes ago, Cgu said:

So transfer at the end "everybody" will incur the stamp fee (either transfering direct to a peso or to otherwise when you transfer from your foreign currency account into the peso account - unless you keep in foreign currency)

That is a little misleading. If you transfer to the same currency type there is no charge. Now I don't know about you, but when I transfer dollars from the US HSBC to my HSBC dollar account here there is no charge and there is also no charge to transfer from my dollar account here to my peso account in the same bank.

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Cgu
51 minutes ago, RogerDuMond said:

That is a little misleading. If you transfer to the same currency type there is no charge. Now I don't know about you, but when I transfer dollars from the US HSBC to my HSBC dollar account here there is no charge and there is also no charge to transfer from my dollar account here to my peso account in the same bank.

True.  I should have been clearer . The stamp fee applies to all peso interbank remittances/transfers (credit) - not within the same bank (of course there no "documents" are needed), but regardless of the currency of the the source (debit account). 

Remittances/Transfer (credit) to a foreign currencies account never incur stamp fee. 

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to_dave007

To add to my previous comment..  my pension payments are sent in Canadian $ from HSBC CDN$ account in Canada, to HSBC CDN$ account in Cebu..  and like I said..  No doc stamp fee.

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to_dave007

Not part of this topic, but WonderSailor should be prepared to answer questions regarding SOURCE and USE of funds being transferred into Cebu..  even more so if WonderSailor is American..  as a result of US banking laws.  Have been asked several times..  its kind of routine now..  If funds come from pension it's not a big issue, but if funds come from XXX source XXX it might be more of an issue.    For use of funds..  I provided some receipts when I was building house..  and since then I just say living expenses and it satisfies them.  From my own experience, and from what I see of others experience here, it's best not to fight these "intrusive" questions.  Better to find a way to give a satisfactory answer as easily as possible.

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RogerDuMond
1 hour ago, to_dave007 said:

Not part of this topic, but WonderSailor should be prepared to answer questions regarding SOURCE and USE of funds being transferred into Cebu..  even more so if WonderSailor is American..  as a result of US banking laws. 

I don't know about other countries, but what you are talking about is an American law that banks from other countries have agreed to comply with. This is not a Philippine law. I am required by HSBC Philippines to fill in a box on my online transfer request from the US to the Philippines  stating the purpose of the funds to comply with FATCA. Now I don't think that Philippine banks are required to report anything to the US unless your Philippine account is over $10,000 at anyone time.

he Foreign Account Tax Compliance Act (FATCA), which was passed as part of the HIRE Act, generally requires that foreign financial Institutions and certain other non-financial foreign entities report on the foreign assets held by their U.S. account holders or be subject to withholding on withholdable payments.  The HIRE Act also contained legislation requiring U.S. persons to report, depending on the value, their foreign financial accounts and foreign assets.

https://www.irs.gov/businesses/corporations/foreign-account-tax-compliance-act-fatca

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Headshot

I have money wired from my US credit union to BPI dollar account all the time with no fees other than the wire fee. No forms are required by anybody. You don't need to worry about FATCA unless you allow your account to go over $10,000 US at any time. Just letting it go over that amount once (one day) will necessitate that you file a FATCA report for the year. Other than that, no worries. Since I only wire enough money each month to live on, my accounts never go over $10,000 US.

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SkyMan

Remember that the FATCA reporting limit is for a total of all foreign holdings over $10k. 

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