What is the best way to transfer money from abroad? Are such transfers subject to tax? We will consider the main aspects of transfers from abroad to the accounts of individuals and legal entities in our review.
For many citizens, translations in Russia are common and understandable. But few people know about transfers from abroad. In addition, even on the Internet there is no detailed information and instructions on how to correctly make or receive a transfer from abroad. There are several options depending on your life situation.
Transfer from abroad from relatives and friends
Western Union, MoneyGram - fast but expensive
If you want to receive a small one-time transfer from abroad (for example, from a friend as a gift or from relatives), then you can use a money transfer system such as Western Union or MoneyGram. Firstly, it will be faster than through a bank, and secondly, it is easier to receive - to receive a transfer, you can apply to almost any partner bank with a passport. The money will be given to you in the currency in which it was sent, or converted at the rate of the bank.
The commission for such a transfer is on average 1-2%, but for large amounts it starts from 0.5%. Money comes instantly or in one day (a 12-hour transfer with Western Union is cheaper). The sender transmits a secret digital code to the recipient. Upon receipt, you must present your passport.
- Pros: quickly, without opening an account.
- Minuses: it is necessary to go to the bank and receive cash, and the cash may not be at the bank's cash desk, the conversion rate in the agent bank may not be the best, the transfer fee is high.
Transfer to a bank account
Bank transfers from abroad are carried out according to the international bank details. You will need:
- international name (for example, Sberbank),
- SWIFT code (note that regional divisions have different ones),
- Account number,
- the recipient's name in Latin (specify the spelling of the name in the bank or write in the same way as on your bank card),
- the purpose of the payment, for example, gift.
The transfer can be received both to a card account and to a regular one. But it is worthwhile to familiarize yourself with the bank's tariffs in advance:
- Crediting to an account in most banks is free, but there may be a limit on the amount in excess of which the commission is charged.
- But a withdrawal or transfer from a bank account may be subject to a commission of 1-2% if the money came by bank transfer and has remained on the account for less than 10 - 30 - 60 days. In the tariffs of debit cards, such a limitation is less common, but there may be a limitation on withdrawals, for example, 150,000 per month without a commission, and above - a commission of 2%.
- Some banks refuse to credit currency transfers to ruble accounts, if there is no additional. agreements for automatic conversion.
So, the pros and cons of bank transfer:
- Pros of bank transfer: cheaper if done correctly; more convenient - no need to go to the bank.
- Minuses: expensive if you withdraw money immediately.
Another option, if you plan to help parents or children from abroad, you can issue an additional credit or debit card in their name. Add. the card will be linked to the main account in foreign currency, so choose banks without a conversion fee. Well, be prepared for the fact that the card will be periodically blocked for dubious transactions.
Tax and currency control
Transactions in excess of 600,000 rubles fall under the bank's currency control. You should not be afraid of this, but you should be ready to confirm the relationship (if the transfers come from relatives) or explain the purpose of the payment.
Gifts from immediate family members are tax-free, regardless of the relative's location:
According to paragraph 2 of clause 18.1 of Article 217 of the Code, income received as a gift is exempt from taxation if the donor and the donee are family members and (or) close relatives in accordance with the Family Code of the Russian Federation (spouses, parents and children, including including adoptive parents and adopted children, grandfather, grandmother and grandchildren, full and half brothers and sisters (having a common father or mother). (FEDERAL TAX SERVICE, LETTER dated July 10, 2012 N ED-4-3 / ON TAXATION OF INCOME OF INDIVIDUALS).
But on gifts from a foreign groom or friends, income tax may well be charged. Read about it below.
You should not agree to the requests of friends and strangers to open an account in your name, for transfers of large amounts of money. For example, you are asked to open an account in your name in order to transfer a large amount from abroad (for example, 5,000,000 rubles). You will be given thousands of reasons why a person allegedly cannot open an account in his own name. The real reason will lie in the fact that the asking person does not want to "shine" with such a problematic translation from abroad. This is because, according to Article 6 of the Federal Law of 07.08.2001, No. 115-FZ "On Counteraction to Legalization (Laundering) of Criminally Obtained Incomes and Financing of Terrorism", operations whose amount equals or exceeds 600,000 rubles ( or equivalent in currency). To exercise such control, the bank will require you to provide documentary evidence of who, on what basis, and for what purpose has transferred such an amount to you. And what will you do if the bank, on the basis of control, informs you about the suspension of the operation and refusal to execute your order to perform the operation (cash withdrawal)? And the real recipient of the funds will demand from you. In addition, the tax office may be interested in you, as we wrote about above.
Earnings from abroad - how to get a transfer
Translation of physical face
If you plan to receive regular payments from abroad (for example, wages from freelancing, etc.), then it is advisable to open a foreign currency bank account or bank card for these purposes. Also, it is necessary to conclude a civil contract with your customer, preferably in Russian, but an option with two languages is allowed. It should be noted right away that such income should be taxed on personal income at a rate of 13%. In addition, if the amount of your income exceeds $ 10,000 per year, then the financial service. monitoring your bank may block your account until the circumstances are clarified.
Now banks are given the opportunity to independently suspend debit transactions for up to 5 days. During this time, you will be required to document the "purity" of the transactions or to clarify the origin of the funds you receive. Every year, you will have to report to the tax office on the 3-NDFL declaration on income received outside the Russian Federation and pay tax. To do this, you will need to attach a copy of your agreement and a bank statement. It should be noted that there is a high responsibility for concealing such income. And banks that may lose their licenses if they do not report such operations will certainly comply with the letter of the law, so it is better not to risk it. If you are "caught", then you will have to pay 13% + fines 5% of the amount of unpaid tax per month for the first 180 days, then 10% monthly of the amount of tax, and then criminal prosecution awaits you.
Yur. person or individual entrepreneur
Corporate taxes there are fewer persons in Russia than for "physicists", but increased requirements and penalties are a bonus. If you are planning to work with foreign customers as a legal entity. a person or individual entrepreneur, you should carefully consider the choice of a bank and discuss upcoming transactions with the currency control service in advance.
The bank will open a transit currency and current currency and ruble accounts, and with the customer you will need to conclude an agreement in two languages with a detailed description of the services provided. In the agreement, you will indicate the details of the currency account.
For each counterparty in the bank, it will be necessary to draw up a "Passport of the transaction" even before the first receipt of money. Within 7 days after receiving the money, you need to issue a certificate of a currency transaction, or sell the currency by transferring it to a ruble account. Each stage of work must be closed with an act, including in Russian, and a copy of it must be submitted to the currency control department of the bank.
Bank transfer is a convenient financial transaction that is used by citizens both within one state and throughout the world.
With the help of non-cash payments, an instant transfer of funds from the sender to the recipient occurs for the services provided, various commodity products and in the form of financial assistance.
Financiers treat a bank transfer in different ways, a transaction carried out by employees at a particular institution, but ultimately they achieve one goal by performing actions:
- on behalf of one client, the bank transfers a monetary equivalent to another person;
- using one of the settlement forms, funds are transferred on payment orders that were addressed by one bank to another financial institution;
- using one of the types of money transfer using non-cash payment, the service is carried out for a certain payment, the issuing bank assumes the obligation to ensure payments.
The essence of the terminology is reduced to a single concept: a bank transfer should be interpreted as a voluntary economic order sent by one person or a company - for a fee to send capital in a certain amount to the recipient's current account.
Basic shipping methods
You can transfer your finances to a consumer using a bank in the following way:
- simple, for this you need to know the details of your own account and the recipient;
- documentary, when a transaction is carried out upon presentation of a documentary set;
- using bank checks.
What is a bank transfer and how can I get it? Answers in the video:
The intermediaries who participate in the transfer receive their earned interest. Therefore, a competitive struggle has formed in this environment, the development and implementation of new schemes help to win in it.
The main criteria in assessing activities are the speed of funds crediting and the cost of the service.
Who became popular among intermediaries
Among the dealers in this area, there are companies that have gained popularity among consumers with an operational speed and affordable cost in transferring finance to foreign recipients:
- points of "Euroset";
It is simple and convenient to replenish an account with Sberbank from a mobile phone if the recipient is in the same country as the sender.
Internal transfer and its features
To send money accurately, the user must know the basic data of his recipient.
Payment details include the following information:
- Name of the bank;
- open current account number;
- BIK - the digital value of the bank identification code;
- sum;
- destination.
What does bank transfer mean? In case of inaccuracy in the specified details, the transaction is canceled, the funds will be returned to the sender except for the commission.
It is possible to transfer money on the territory of one state between different financial institutions, they are carried out with the help of the national bank.
What does Alfa-Bank offer for card-to-card transfers? More details.
Actions are performed by a clerk on the basis of a submitted application or when using Internet banking, in this case there is a saving on financing of the service personnel.
Managers use interbranch transfer if it becomes necessary to pay between different departments, but in the same institution. A similar method is used in case of insufficient funds in the point in order to pay the client a significant amount.
Cash Sending Mechanism
Until the cash equivalent arrives at the address, it goes through some processing.
The procedure consists of sequential stages:
- The user sends for execution the payment order to the financial institution "A";
- The recipient has an open current account with bank "B";
- The performer of the institution "A" deducts the specified amount from the applicant's account;
- The money is sent to the correspondent account of the Central Bank;
- The payment is checked, it must comply with the requirements of the Central District Hospital;
- Funds are transferred to institution “B”;
- They carry out the identification of the indicated information of the recipient, the correspondence of all the details and only then the received amount is credited.
Financial departments are not responsible for errors in payment orders, they are obliged to execute the initiative coming from the sender.
How a transaction is carried out through international channels
The population migrates between countries, hence the need for international bank transfers. Citizens use the popular payment system SWIFT to transfer money.
With its help, currency transactions are performed for users of different countries. Financiers participating in transactions have their own identification codes.
To carry out a transaction, you have to fill out a form with the designation:
- the addressee, his personal data;
- the name of the recipient's institution;
- code;
- current account numbers.
The transaction is carried out in the currency of the country in which the recipient is located
How to make bank transfers without commission? Watch the video:
Intermediary banks placed on their territory:
- Germany;
- Japan;
- United Kingdom;
Bankers have correspondent accounts through which they carry out international transfers.
How to transfer funds between cardholders
Citizens keep their savings in various financial institutions, and pay for goods using plastic cards, which are provided by various payment systems.
An online account is both replenished and withdrawn cash from it by transferring to the card.
At this address, or rather on the wallet number, earnings are received for teleworkers, from an electronic account you can pay for housing and communal services, fines and taxes. Mobile communications are generally paid without commissions.
Conclusion
Each person chooses for himself the most convenient methods of settlements and financial transactions, but not a single family budget has done without bank transfers.
People appreciated the convenience of payments without queues from their home armchairs, the instant receipt of money in emergency situations, where the bank and its transfer service are an important assistant.
From the translator: In recent months, the news of the field of finance has become firmly established in the lives of many people. One of the recent topics is the possible disconnection of Russia from the SWIFT system. The threat looks very serious, but what really threatens the country if events develop according to this scenario? Our today's material is intended to help you understand how everything works in the global world of finance.
Last week [article published November 2013] Twitter went crazy over the fact that someone transferred almost $ 150 million in a single cryptocurrency transaction. The emergence of such tweet it was in the order of things:
$ 147 Million BTC 194,993 Transaction Spawns Many Mysteries and Speculation
There have been many comments about how expensive and difficult it would be to implement this in a conventional banking system, and it is quite possible that it is. But at the same time, I paid attention to this: from my own experience I know that almost no one understands how payment systems actually work. That is: when you "transfer" money to a supplier or "make a payment" to someone else's account, how does the money go from your his accounts to accounts others?
With this article, I will try to change the situation and provide a simple, but hopefully not oversimplified analysis in this area.
First, let's find common ground
I think, first of all, you need to understand that bank deposits are [the bank's obligations to you]... When you put money in the bank, actually you have no deposit. This is not a bag of money with your name written on it. Instead, you lent this money to the bank. He should them to you. This money becomes one of the obligations of the bank. That is why we say that our money is in a credit account: we have provided a loan to the bank. Likewise, if you exceed your loan and owe the bank, it becomes narrower your commitment and their an asset. To understand how money moves, it is important to understand that every entry in the accounting statement can be viewed from these two perspectives.Transfer of funds to the account of a client of the same bank
Let's start with a simple example. Imagine your name is Alice and you are a customer of, say, Barclays Bank. You owe £ 10 to your friend named Bean who also uses Barclays services. Bob is easy to pay: you tell the bank about your intentions, he withdraws funds from your account and deposits 10 pounds into your friend's account. The procedure is carried out electronically through the automated banking system Barclays, everything is extremely simple: money neither goes to the bank, nor is it withdrawn from it; only the system of accounts is updated. The bank owes you £ 10 less and Bob owes you £ 10 more. Everything balances out and everything happens inside the bank: the transaction is said to be "recorded" in the bank's books. This is illustrated in the diagram below: there are only three parties involved - you, Bob and Barclays. (Naturally, the same analysis can be done if you are making a transaction in euros through Deutsche Bank or in dollars through Citi, etc.)
But what happens when you need to transfer money to the account of a client of another bank?
Here the situation is more interesting. Imagine you have to pay someone Charlie, to a client of HSBC bank. Problem arises: Barclays has no problem with withdrawing £ 10 from your account, but how can they convince HSBC to increased Charlie's £ 10 bill? Why would HSBC agree to owe Charlie more than before? They are not a charitable organization! Clearly the answer is that if we want HSBC to owe Charlie a little more, they need to owe someone else a little smaller.Who should this “other” be? This is definitely not Alice: if you remember, she has nothing to do with HSBC. By elimination, it turns out that the only possible option is Barclays. And the first thing that comes to mind is what if HSBC will open an account with Barclays and Barclays will open an account with HSBC? Each of the banks could open an account with another bank and regulate those accounts to solve this kind of problem ...
Here's how to proceed:
- Barclays can withdraw £ 10 from Alice's account
- Barclays can then add £ 10 to their HSBC account with Barclays
- Barclays can then send a message to HSBC that they have increased their account by £ 10 and would like them to increase Charlie's account by £ 10.
- HSBC would have received this message and, knowing that they have an extra £ 10 deposit at Barclays, could increase Charlie's account.
This payment processing model (and its more complex variations) is known as correspondent banking. It can be represented graphically similar to the diagram below. The previous scheme is taken as a basis and a second commercial bank is added; it is important to note that the presence correspondent relations enables banks to facilitate payment of payments to eligible customers.
The scheme works pretty well, but there are some complications:
- Most obviously, this is only possible when two banks are in direct communication with each other. Otherwise, either you will not be able to make the payment, or you will need to get a route through third(or fourth!) bank until you complete the journey from point A to point B. Of course, this increases the cost and the degree of complexity. (Some experts limit the use of the concept of "correspondent relations" to situations involving different currencies, but it seems to me that this term is useful to use even in simpler situations)
- More worrisome is the fact that it is also risky. Take a look at the situation from the perspective of HSBC Bank. The result of the payment they made was an increased vulnerability by Barclays. In our example, only £ 10. But imagine that the sum was £ 150 million, and the correspondent bank was not Barclays, but a smaller and possibly less reliable organization: HSBC would be in big trouble if the bank went bankrupt. One solution is to make a small change in the model itself: instead of depositing funds into HSBC's account, Barclays could ask HSBC to debit the account that Barclays uses. Then there would be no need for large interbank settlements. However, with this approach, other difficulties arise and, one way or another, the interdependence inherent in this model is a rather big problem.
*
Wait ... why complicate things? Can't you just use the SWIFT system? Society for Worldwide Interbank Financial Telecommunications] and end it?
As a rule, during the discussion of payment systems, there will certainly be a person who will wave his hands, shout "SWIFT" and think that the issue has been resolved. In my opinion, this only confirms that such people probably do not understand what they are talking about.The SWIFT network allows banks to freely exchange electronic messages with each other. One of the message types supported by the SWIFT network is MT103. MT103 allows one bank to instruct another bank to transfer the amount to one of its customers, while the same amount is debited from the sending entity's account at the receiving bank so that everything is balanced. You can imagine how the MT103 message would apply in the case described in the previous section.
Thus, as a result of sending the MT103 message in the SWIFT network, money is "transferred" between two banks, but it is especially important to understand what is actually happening: the message over the SWIFT network is just an indication; the movement of funds is carried out when they are transferred to some accounts and depends on banks that have accounts with other banks (directly or through intermediary banks). Just waving your hands and shouting "SWIFT!" Means hiding these complexities, and therefore hindering understanding of the system.
Okay ... I see. And what about ACH, EURO1, Faster Payments, BACS, CHAPS, FedWire, Target2 and so on and so on ????
Stop ... Let's recap first.We have shown that transferring money between two account holders at the same bank is straightforward.
We also showed how you can transfer money between two account holders in different banks in a rather clever way: to make sure that each of the banks opens an account with friend bank.
We also discussed how electronic messaging systems like SWIFT can manage the flow of information between two banks and make sure transfers are fast, reliable and cheap.
But we still have a lot to discuss ... as serious issues arise such as counterparty risk, liquidity and costs.
Consider first liquidity and costs.
We need to solve the problem of liquidity and costs
First, you need to consider that the SWIFT network costs money. If Barclays had to send a message over the SWIFT network to HSBC every time you want to transfer £ 10 to Charlie's account, you would soon find significant costs in your statement. But worse, a more serious problem arises - liquidity.Consider how much money Barclays would need to keep in touch with all correspondent banks every day if the system described earlier were put into practice. They would need to have large amounts in all other banks in case one of their clients wanted to transfer money to a client's account at HSBC, Lloyds, Co-op or elsewhere. This cash could be invested, lent, or otherwise spent.
But here's an interesting thought: Ultimately, a Barclays customer is likely to transfer money to an HSBC customer account as likely as an HSBC customer will transfer money to a Barclays customer at some point in time.
That is, what if we continued to track all the numerous payments throughout the day and only recorded difference? With this approach, each of the banks could have much less cash in each of the correspondent accounts, and each could invest their money more efficiently, while cutting costs and (hopefully) sending some of that money to your bank. This reasoning led to the emergence deferred net settlement systems(SONR). In the UK, such a system is BACS, and its counterparts can be found in any country. In such systems, messages are not exchanged over the SWIFT network. Instead, messages (or files) go to a central “clearinghouse” system (such as BACS) that tracks all payments and then calculates the net amount that each bank owes to any other bank on time. After that, they carry out certain transactions with each other (perhaps by sending funds to / from accounts that each of the banks has in another bank) or use the RTGS system described below.
This method significantly reduces cost and liquidity requirements and complements our scheme with one more block:
It is worth noting that the mechanisms for using credit cards and even PayPal can be described in the same way (as COHP): they are all characterized by the process of calculating internal transaction costs, the result of which is only the net amount determined for large banks.
But even with this approach, a potentially more serious problem arises - the loss of completeness of calculation... You can send an instruction for your payment in the morning, but the receiving bank will not be able to receive the (net) funds until a certain point.
Therefore, the receiving bank has to wait for the receipt of (clean) settlement of the account in case of a possible bankruptcy of the sender during the transfer: it would be rash to transfer funds to the receiving party in advance. The result is a delay.
On the other hand, one could take the risk and cancel the transaction in the event of a problem. But then the settlement would never be considered "complete", and in this case the recipient could not expect to receive these funds before a certain period.
Can both settlement completion and zero counterparty risk be achieved?
This is where all the pieces of the puzzle come together. None of the approaches discussed earlier can be applied in situations where you need to be absolutely sure that the payment will be made promptly, and it cannot be canceled even if the sending bank subsequently goes bankrupt... You desperately need this kind of guarantee, for example, if you intend to create a settlement system for securities transactions: no one will give you $ 150 million in bonds or stocks if there is a risk that these $ 150 million will not be paid or they cannot be returned!You need a system like the first one we looked at (Alice transfers money to Bob's account at the same bank) - since everything happens really fast in it - but that will work with more than one bank involved. The multilateral interbank system, discussed earlier, seems to work, but it becomes quite confusing when transferring large enough amounts and when there is a possibility that one or another bank may go bankrupt.
Now, if banks could have accounts in a bank that could not go bankrupt ... a kind of bank that would be in the very center of the system. You can think of a name for it. Let's call it the central bank!
Following this logic, the idea of a system arises gross settlements in real time[eng. Real-Time Gross Settlement system, RTGS].
If all the largest banks in the country have accounts with the central bank, they will be able to transfer money from one bank to another simply by instructing the central bank to write off funds from one account and transfer them to another. For this, the systems CHAPS, FedWire and Target 2 are intended, which are engaged in the transfer of pounds, dollars and euros, respectively. These systems carry out the movement of funds in real time between the accounts that banks have with the respective central bank. So this is the system:
- Gross- no accounting of debts (otherwise the system could not be instant)
- Calculations- the presence of completeness; no refund
- In the mode real time- calculations are carried out instantly.
I thought this article has something to do with Bitcoin
It's good that we were reminded. Now the question arises: can Bitcoin be put into this model?It seems to me that Bitcoin is very similar to the RTGS system. It does not account for debts, (obviously) there are no correspondent relations between banks, and all calculations are gross, completed.
However, the "traditional" financial landscape is interesting in that most retail transactions today are not carried out through the RTGS system. For example, direct electronic payments between UK residents are made through the fast payment system FPS. Faster Payments system], which fulfills the offset of counterclaims several times a day, not instantly. Why is that? I would say because, first of all, FPS is (almost) free, while the cost of payments in the CHAPS system is 25 pounds. Many customers would probably use RTGS if it were just as convenient and cheap.
Therefore, my unanswered question is: will the Bitcoin payment system remain just a semblance of a traditional RTGS that carries out only the most significant transfers? Or will changes in the underlying network (block size restrictions, micropayment channels, etc.) happen and will happen quickly enough as the volume of transactions increases, allowing the system to remain available for both more meaningful and less meaningful payments?
It seems to me that the question still remains open: I am sure that Bitcoin will change the world, but at the same time I am not so sure that we will live in a world where every transaction carried out using the Bitcoin network will “pass” through the Blockchain base.
Payment system is a service for transferring money and other funds in electronic or physical form. International payment systems of cards (VISA, MasterCard, American Express).
