What are the tax consequences of a money transfer from Malaysia to the Philippines


What are the tax consequences of a money transfer from Malaysia to the Philippines
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Most people working overseas need to remit money to their relatives regularly for their expenses. If you are a Filipino working in Malaysia, you must be doing the same. However, it is essential to understand the tax consequences of sending money to the Philippines.

Tax implications for money transfer to the Philippines from Malaysia

Here are the different things you need to keep in mind regarding money transfers to the Philippines.

  • Income tax

Money transfer to the Philippines is subject to income tax. The amount of tax depends on several factors, including the amount that you send. The recipient who receives the remittance needs to pay a tax between 5% and 33%, as the government considers that money as income.

  • Capital gains tax

If you’re not aware of what capital gains tax is, it is a tax on the profits from an investment. That means if you’ve been earning interest from your savings account, or stocks and bonds, those earnings are subject to capital gains tax of 30%.

  • Estate tax

The money that you send to the Philippines is subject to estate tax. It is a tax imposed on the value of your property after death. If you die without a will, the relevant laws of the Philippines will apply to divide the property among your next kin. You can state how your estate will be divided if you have a will.

  • Gift tax

If you remit money to the Philippines, you should be aware of the gift tax. If a Filipino receives gifts of above PHP 500,000 in a year, they should pay a donor’s tax of 6%.

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If you are looking for online money transfer services, look for a reliable money transfer agency.  Keep in mind to check the latest MYR to PHP rates before transferring the money.


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Sikander Zaman
writing is my profession, doing this from long time. writing for many online websites one of them is scoopearth