Transferwise
 

So, I sorta wanted to check this new Branson's gig and here's a chat I had:

Me: Hi, May I ask if the sys works as WU does, same non taxable p2p?

Irma | TransferWise Support: Hey Thanks for getting in contact
Can you please specify your question a bit to make sure ill give you the most accurate answer

Me: Well, say, i get WU transfers at times and if a person sends money to another its considered non taxable, like personal transfer, not a business.
what about your system?

Irma | TransferWise Support: Alright, I think I see what you mean
Me: if John from USA sends $300 to me in Guatemala is that tax free?
Irma | TransferWise Support: The only thing we charge is our service fee which is 0,5% of the amount but just to be super sure I'm gonna quickly confirm with my colleague as well! one moment

Me: thanks

Irma | TransferWise Support: Yes, I confirmed with my colleague
We don't take any taxes!
Is that helpful?

Me: no
you dont, but the question is will i have to pay tax if i get the money via the system
are you in the States? UK?

Irma | TransferWise Support: I can't see a point where this tax could be taken from you

Me: if i send you money will you have to report income tax or not?

Irma | TransferWise Support: No, never heard of anyone having to do this

Me: thats not a professional answer but ok, at least something.
cheers

Irma | TransferWise Support: I'm very sorry for this answer right now

Me: ask your management

Irma | TransferWise Support: Let me double confirm that
Still investigating to answer your question. I really want to apologize for the unprofessional answer before. I got really confused for a second, because I know for a fact we don't tax for anything but couldn't confirm it for you, because the questions you asked made me rethink how does the process go outside from the TransferWise transfer
Ok, the answer I can give you is that the EU law says that if you have paid your taxes in one of the EUR countries, you can move your money without paying double

Me: Got it. So if its a personal transfer and somebody paid tax off the money he is sending I wont need to do so..

Irma | TransferWise Support: Exactly
The tax process goes completely separately from our transfer

Me: So, the money, being sent, are considered AFTER TAX on sender's hands
any amount restrictions? Like if I get EUR5000 a month via your system then what?
its about RECEIVING money. Should a receving party pay tax or not?

Irma | TransferWise Support: sorry for the delay just confirming your questions with a colleague

Me: ok. its a simple thing. thats why i asked about Western Uinion comparison.

Irma | TransferWise Support: Alright, so I got the final answer for you
What we do is that we're a currency conversion service, we don't control the TAX or ever ask about it from you the person who is sending the money is responsible for any TAX that is unpaid if it is required so. What we do is take the fund, convert it into the other currency and send it out we ask for payment reason to prevent fraud and anti money laundering but controlling TAX isn't one of the things that we do

Me: can you confirm that receiving money via your system does not require reporting income tax?

Irma | TransferWise Support: I can confirm you that we don't require reporting income tax

Me: good luck with your abrakadabra thing. you NEVER answered my question.
__________________________________________________ ______________

Did you understand if the receiving party is required to report income tax ?

I'm missing your point about why you're grilling them about whether you have to report taxes on funds received.

It's a money transfer service. Reporting is your responsibility, not theirs (apart from investigating and reporting suspicious activity).

Also not sure why you're insulting the customer service rep.

Never heard of them ...

They're all over social media and tech blogs.

You are asking them if you can launder money through their system. They aren't going to tell you you can do that.

sorry - but this^^^^^

Come on, WU, for example, is considered tax free, a person to person transfer. More, when you send or receive you sign it's not connected with any business activity.

Too hard to answer?

seriously - you are completely off track here

when i sell content and someone pays by WU, i still have to pay taxes

Neither Paypal, Paxum, WU, Transferwise or even your bank have anything to do with your taxes

And not reporting payments by WU for your business activity is tax evasion

In Ukraine you won't receive WU unless you sign its not business related,
there is a special check box on the form, so it's tax free.
I'm not off the track, this is how it's done in Ukraine, it's for person to person purposes, not for selling anything. Like all their testimonials on rotation student case and so on.

so when you sell someone design and he wants to pay by WU you refuse the payment?

or you claim it's private and then do not pay taxes on it (tax evasion)?

no offense - but i would suggest some accounting 101

Not sure where you got that. Your local tax laws will determine your tax liability, not the type of service you use. Some countries will have upper limits for personal gifts for natural persons (I believe it's 14k or 15k per person per annum in the US with a combined lifetime limit, as an example). If it's not really a gift then the whole discussion is pointless.

If the sending party sends without any business reason there is no evasion.

I lived in Ukraine for almost 43 years. So I know how WU operates there.
No agent would give you the money unless you sign it's not business.
Probably because of total tax evasion they decided they'd share
fees with the government to be allowed to operate. A lot of workers
living in EU send money to their families an relatives. Is that tax evasion?
Fuck no.

Sorry dude but you are somewhat retarded. What taxes you have to pay depends on where you are tax resident not the service used to transfer the money.
WU does not magically launder your money, yes you may have to sign that the money are personal transfer but this is not because they magically 'washed it', it's because they are not allowed to process payments in your country. If you receive payment from WU and sign it as personal you are commiting tax evasion, obvously authorities won't catch you for small amounts but try receiving 50-60k usd every month as personal and you'll find yourself under investigatin in no time.

OK, the agent probably missed that important piece of information (just like we did), why not go back and ask their agents more specifically about how their service operates in UA? Be more specific and use UA instead of Guatemala, otherwise you will only get generic information and/or fluff.

ps. Slava trudu! :pimp

Enough with this 'retard' gigs, it's not funny anymore, seriously. Do you want me to come down that level? I guess no.

It's understood we don't talk 50-60k /mo, there are def much better ways to work out that amount.

I wanted to ask if Sam sends a WU of $300 to Ivan via their system as a non-business transfer, personal transfer, should Ivan pay income tax or not.

How about not going crazy?

Seriously?

Generally speaking not, regardless which method was used to send the money, because the sender presumably paid tax for the money and they don't pay for a product or service. then again you have to check with locall regulations where you live

Seriously "Slava trudu" or Seriously "you should consider asking them more specifically about how they operate in UA"?

Si. That makes sense now.

UA or Guatemala does not matter, they can't answer USA/UK or whenever they are based at. In short she sorta said "TransferWise Support: I can't see a point where this tax could be taken from you"...

Assuming that they treat the money as p2p after tax $ hand outs. IMHO.

wire from Paxum to the bank account inside transfer wise anyone know if it´s possible?

Is the tax rate low there?

Wouldn't everyone just give big discounts for using WU and avoid taxes completely?

Bump
 

Id like to know as well.