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Foreign Transfer Duty Declaration Template for Philippines

A Foreign Transfer Duty Declaration is a mandatory regulatory document required in the Philippines for declaring international fund transfers and ensuring compliance with the country's foreign exchange regulations. This document, governed by BSP regulations and Philippine tax laws, serves as an official declaration of foreign currency transfers, including the purpose, amount, and parties involved. It requires detailed information about the source of funds, beneficiary details, and applicable duty calculations, while ensuring compliance with anti-money laundering regulations and proper tax assessment under Philippine jurisdiction.

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What is a Foreign Transfer Duty Declaration?

The Foreign Transfer Duty Declaration is a crucial compliance document required by Philippine law for international fund transfers. This declaration becomes necessary when individuals or entities transfer funds abroad or receive substantial foreign currency into the Philippines. The document ensures transparency in international financial transactions and compliance with the Bangko Sentral ng Pilipinas (BSP) regulations, anti-money laundering laws, and tax requirements. It must include comprehensive details about the parties involved, transfer amounts, purpose of transfer, and duty calculations. The declaration is particularly important given the Philippines' strict foreign exchange regulations and the government's efforts to maintain financial system integrity while preventing tax evasion and money laundering.

What sections should be included in a Foreign Transfer Duty Declaration?

1. Declarant Information: Details of the person or entity making the declaration, including full legal name, address, tax identification number, and contact information

2. Transfer Details: Specific information about the foreign transfer including amount, currency, purpose of transfer, and date of transfer

3. Source of Funds: Declaration of the origin of funds being transferred, including supporting documentation references

4. Beneficiary Information: Complete details of the recipient including name, address, and relationship to declarant

5. Tax Classification: Specification of applicable tax rates and basis for calculation

6. Duty Calculation: Detailed computation of transfer duties payable based on current regulations

7. Declaration Statement: Formal statement affirming the truth and accuracy of the provided information

8. Compliance Confirmation: Confirmation of compliance with BSP regulations and anti-money laundering requirements

What sections are optional to include in a Foreign Transfer Duty Declaration?

1. Multiple Transfer Schedule: Required only for declarations covering multiple transfers or recurring transactions

2. Related Party Disclosure: Required when transfers involve related parties as defined by tax regulations

3. Foreign Exchange Dealer Information: Required when transfer is processed through an authorized foreign exchange dealer

4. Tax Relief Claim: Required when claiming relief under tax treaties or special laws

5. Agent Authorization: Required when declaration is being made by an authorized representative

What schedules should be included in a Foreign Transfer Duty Declaration?

1. Schedule A - Supporting Documents: List and copies of all required supporting documents including proof of source of funds, identification documents, and relevant contracts

2. Schedule B - Computation Worksheet: Detailed breakdown of duty calculations including applicable rates and exemptions

3. Schedule C - Transaction History: Record of previous related transfers if part of a series of transactions

4. Appendix 1 - BSP Guidelines: Reference copy of relevant BSP guidelines and regulations applicable to the transfer

5. Appendix 2 - Authorization Forms: Copies of any required authorization forms or powers of attorney

6. Appendix 3 - Tax Treaty Relief: Documentation supporting any tax treaty relief claims if applicable

Authors

Alex Denne

Head of Growth (Open Source Law) @ Ƶ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

Philippines

Publisher

Ƶ

Document Type

Declaration Form

Cost

Free to use
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Banking and Financial Services

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Relevant Teams

Finance

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Relevant Roles

Chief Financial Officer

Finance Manager

Tax Manager

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