You may need to send money to another nation for personal or professional reasons, but are you sure you are doing it right? International money transfer is tricky business and unless everything is in perfect order, problems may arise on either or both ends. Depending on the issue, it can lead to delays, excess fees, and unpaid taxes that you might not even be aware of. Avoid the hassle and keep the international transfers as smooth as possible by going through the following suggestions.
Get to Know the Tax Laws and Limits on Both Ends
Any individual or entity who needs to send international transfers must get themselves properly accustomed with the various applicable laws and limits in both nations. If there is a language barrier on the receiving end, ask the recipient parties to get themselves properly acquainted with the local laws that govern incoming foreign remittance. You should do the same on your end as well by visiting the national income tax department’s government website. Note that your foreign remittance may or may not taxed differently from your income tax, depending on the transfer’s purpose.
Don’t Pay More in Fees than You Must
Most nations on the receiving end of inward remittance will not make the process difficult and they may even be tax free to some extent in the recipient’s nation. However, the money transfer service used to make the transfer will at least charge a service fee and a foreign currency conversion fee. How much will be charged and what rate will depend on the money transfer service used.
Some services will also charge a range of additional fees that may or may not make much sense to you. Unless you are paying close attention, this could eat into the transfers quite significantly, especially in the long run. Use Ria Money Transfer for international transactions as they currently charge the lowest fees, while also facilitating the quickest international fund transfers online.
Do Not Trust Unregistered Money Transfer Services
There are illegal ways to transfer money to a foreign nation and they will not announce themselves as such. Do not trust any money transfer service that does not have a verifiable presence within the inward/outward foreign remittance industry. They might offer lucrative deals, but don’t be enticed. You will either be scammed or made a part of something much sinister such as international tax fraud.
Do a Bit of Math
The impact of this step could be minor or significant, depending on the volume of your transfers. For business users in particular, doing a bit of math to get the most out of every transfer is highly recommended. The thing is, the value of all currencies fluctuates and some fluctuate more than the others.
Online money transfer services will usually provide you with an option to pay/send the funds in a currency of your choice. By keeping a close on the fluctuating price of all major currencies, choosing the most profitable pair during each transfer/payment can make a huge difference in the final value of the sent and received funds.