Are money transfers taxed?
Tax laws vary from country to country but are very complex in every instance.
In America, in most cases, you won’t need to pay taxes on receiving small financial gifts but you may be required to report the gift to IRS if the gift value exceeds $100,000. IRS will then decide if you need to pay tax or not.
In the UK, you do not need to pay taxes on receiving small money transfer gifts, however, you might be required to pay tax on larger amounts. There is no set amount to pay as rates fluctuate every day. To get a better understanding of the taxes you might need to pay, you should contact HMRC.
In Australia, if you receive an inheritance from overseas you are not required to pay taxes, however, if this money is put towards an investment, all the earning are taxable. If you’re receiving a monetary gift, it will not be taxable, however, Australian Tax Office (AOT) doesn’t view all the international money transfers as gifts, hence you should contact AOT to explain your situation if the gift is high in value.
Each country in the EU will have its own set of tax laws and rules for receiving monetary gifts. However, money sent for a business will be taxed as a foreign income. If you’re looking to receive a large amount from abroad, you should hire an accountant or contact your local tax office for any further advice.
To ensure you don’t violate the law, contact a tax expert in your country to assist you with your international money transfer.