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Borderless accounts and tax

Will you report my transfers to the tax authorities?

TransferWise Limited is a UK company authorised by the Financial Conduct Authority as an Electronic Money
Institution. We are still evaluating the impact of the Common Reporting Standards, including FATCA, to our business
and how we will adopt the new requirements. At this time we are not reporting this information to HMRC or any
other tax authority.

Who do I have to report my taxes to?

Customers are required to disclose and pay any necessary taxes associated with transfers made through our
systems.

The triggering of a tax liability and/or reporting obligation will depend on your tax residency, the nature of the
income/gains and potentially the amount. We recommend you seek tax advice if you are unclear on the implications
of a specific transaction.

Does TransferWise charge any taxes?

TransferWise may have to levy tax on its transfer fee according to local tax laws. For example, Brazilian real (BRL)
transactions where IOF (Imposto sobre Operações Financeiras — financial operations tax) may be imposed by our
banking partner(s). Where transactional taxes apply, these will either be included in the fee payable or shown
separately at the time of payment, and won't impact the amount sent to the recipient.

TransferWise will pay out the agreed amount to the recipient and won't withhold any taxes on money you transfer.
Depending on the nature of a transfer, you and/or the recipient may need to declare and pay tax. TransferWise can't
advise whether tax applies to your transfer and we recommend that you ask a financial advisor and/or the relevant
tax authority.

If I open a EUR account (through the German bank, Deutsche Handelsbank) do I need to submit a tax declaration in
Germany? Or pay any German tax on my borderless account?

The borderless account itself will not create a taxable presence (commonly referred to as a permanent
establishment). Assuming you have no other assets or activity in Germany, you will have no tax obligations including
German tax return filings.

How does having a borderless account impact my taxes?

Assuming you are UK tax resident, most income/gains are taxed on a worldwide basis irrespective of the bank
account location where the funds are remitted to. There are different rules for ‘non-domiciled’ individuals, also
 known as non-doms.

Is my borderless account considered within the UK for non-domiciles or non-doms?

Yes,our borderless account is considered to be UK situs. If you convert to GBP it will be treated as remitted in the
UK.

Please note - The above information is based on UK tax law, so you may need to check this information with your
own tax authority if you have any more specific questions.

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Getting started(/help/11/getting-started)

Managing your account(/help/12/managing-your-profile)

Understanding fees and rates(/help/13/understanding-fees-and-rates)

Currencies(/help/14/currencies)

Paying for your transfer(/help/15/paying-for-your-transfer)

Status of your transfer(/help/16/status-of-your-transfer)

Borderless account(/help/17/borderless-account)

TransferWise debit Mastercard(/help/18/transferwise-debit-mastercard)

TransferWise for Business(/help/19/transferwise-for-business)

Verification(/help/20/verification)

Sending large amounts(/help/25/sending-large-amounts)

Inviting friends(/help/21/inviting-friends)

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Data and security(/help/23/data-and-security)

Technical issues(/help/24/technical-issues)

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 © TransferWise Ltd 2019

TransferWise is authorised by the Financial Conduct Authority under the Electronic Money Regulations 2011, Firm Reference 900507
(https://register.fca.org.uk/ShPo_FirmDetailsPage?id=001b000001EjC6SAAV), for the issuing of electronic money.