TransferWise & Revolut - tax?

Status
Not open for further replies.

Mike Delgado

Registered Member
Joined
Dec 5, 2016
Messages
80
Reaction score
15
Hi guys,
How does it work with TransferWise and Revolut.
Do they report the amounts themselves to the national tax agency, or is it completely up to yourself?

My first thought is that they prob. do register everything for you?

Let’s say you Will have 50k USD transfererd to the account over a year, from some work you’ve done, and over the next year you Will slowly use that.

Then how about VAT and taxes, if you normally use a bigger national bank that your accountant has access to, bur TW/Revolut is just an extra bank.

Thank you in advance - i hope this made just a little sense :)
 

HoNeYBiRD

Jr. Executive VIP
Jr. VIP
Joined
May 1, 2009
Messages
9,934
Reaction score
11,974
Last edited:

insightstudio

BANNED
Joined
Jan 17, 2018
Messages
132
Reaction score
60
Basically you could receive hundreds of thousands and nobody cares?

On N26 they ask you for SSN or Fiscal Code for tax reporting purposes.
 

ibansepacom

Registered Member
Joined
Jul 9, 2020
Messages
57
Reaction score
11
CRS will care eventually, EMIs are not obliged to report now but probably will

all your account balances will be reported to your tax authority

the way out of it is to create a non(mis) reportable account
 

nakamura

Jr. VIP
Jr. VIP
Joined
Mar 22, 2013
Messages
3,727
Reaction score
5,172
Website
germanwriters.com
all your account balances will be reported to your tax authority
are you sure about this? from what I heard they are not even a "real" bank account. They are basically just a payment provider with several currencies.

Also, keep in mind on Revolut you can easily exchange your money to BTC (or other cryptio) and also Gold etc., I don't think they will report to any tax authority how much BTC or Gold you got.

My guess is it is entirely up to the person, but Revolut will cooperate with the authorities if they ever get contacted about the balance
 

VSYNC

Jr Vip
Jr. VIP
Joined
Nov 20, 2019
Messages
3,162
Reaction score
8,611
Website
www.staggeringbeauty.com
Personal recent experience: had a Revolut account, used it for months no issue.

Made a larger transaction into the account from another account, had the account semi-restricted where I could withdraw but not deposit.

Told to provide proof of the source of my income, including a small laundry list of different things.

Decided to do it because I wanted the account and had nothing to hide. Completed, explained the source - still banned because they rejected it.

Argued for a few weeks with them, though f**k it, pulled everything and closed the account.

This was triggered by a large-ish transaction and no doubt the details I provided would have been sent to the tax authority in my country.
 

insightstudio

BANNED
Joined
Jan 17, 2018
Messages
132
Reaction score
60
Personal recent experience: had a Revolut account, used it for months no issue.

Made a larger transaction into the account from another account, had the account semi-restricted where I could withdraw but not deposit.

Told to provide proof of the source of my income, including a small laundry list of different things.

Decided to do it because I wanted the account and had nothing to hide. Completed, explained the source - still banned because they rejected it.

Argued for a few weeks with them, though f**k it, pulled everything and closed the account.

This was triggered by a large-ish transaction.

Are we talking 6 figures?

Never had issues with 5 figures on Revolut and N26.
 

Mike Delgado

Registered Member
Joined
Dec 5, 2016
Messages
80
Reaction score
15
Personal recent experience: had a Revolut account, used it for months no issue.

Made a larger transaction into the account from another account, had the account semi-restricted where I could withdraw but not deposit.

Told to provide proof of the source of my income, including a small laundry list of different things.

Decided to do it because I wanted the account and had nothing to hide. Completed, explained the source - still banned because they rejected it.

Argued for a few weeks with them, though f**k it, pulled everything and closed the account.

This was triggered by a large-ish transaction and no doubt the details I provided would have been sent to the tax authority in my country.
How large?
 

VSYNC

Jr Vip
Jr. VIP
Joined
Nov 20, 2019
Messages
3,162
Reaction score
8,611
Website
www.staggeringbeauty.com
mid 4 figures, so others might not have had issues with more but still this did happen to me. My income is crypto-based and that could be a factor.
 

insightstudio

BANNED
Joined
Jan 17, 2018
Messages
132
Reaction score
60
mid 4 figures, so others might not have had issues with more but still this did happen to me. My income is crypto-based and that could be a factor.

That is really, really strange.

I believe they looked at your account as a whole: source of transactions, activities and such.
A mid 4 figures number should not trigger a flag.
 

cooxer

Junior Member
Joined
Jul 5, 2016
Messages
121
Reaction score
84
From my own experience I can say if fintech does not have an office and does not operate under your country bank they are not obliged to report you to anyone.

It can vary on country but most financial market members must report you once your account exceeds 15k or so.

Now the problem is you won’t be able to transfer 100k easily on any account, because you will be asked to upload documents to prove your income source. If you don’t comply your account will be closed for good.

I got a few fintech accounts blocked because of cryptocurrency payments.
 

ibansepacom

Registered Member
Joined
Jul 9, 2020
Messages
57
Reaction score
11
are you sure about this? from what I heard they are not even a "real" bank account. They are basically just a payment provider with several currencies.

Also, keep in mind on Revolut you can easily exchange your money to BTC (or other cryptio) and also Gold etc., I don't think they will report to any tax authority how much BTC or Gold you got.

My guess is it is entirely up to the person, but Revolut will cooperate with the authorities if they ever get contacted about the balance

100% pal, i've been working in the banking industry for over 20 years now
all account balances between major countries started being reported in 2019
https://en.wikipedia.org/wiki/Common_Reporting_Standard
revolut has several licenses, one is a real banking license

you are correct that non all payment institutions are required to join CRS just yet but this will change like next year or sooner

BTC purchase in Revo will never save you from anything. It is a non fungible BTC, you cannot withdraw it. They hold it for you and it is similar to investment as you will need to pay tax from the capital gain of it.
 

ibansepacom

Registered Member
Joined
Jul 9, 2020
Messages
57
Reaction score
11
Personal recent experience: had a Revolut account, used it for months no issue.

Made a larger transaction into the account from another account, had the account semi-restricted where I could withdraw but not deposit.

Told to provide proof of the source of my income, including a small laundry list of different things.

Decided to do it because I wanted the account and had nothing to hide. Completed, explained the source - still banned because they rejected it.

Argued for a few weeks with them, though f**k it, pulled everything and closed the account.

This was triggered by a large-ish transaction and no doubt the details I provided would have been sent to the tax authority in my country.
exactly

dont expect to evade anything through revolut especially if you have no clean source of funds

the only option is to have a non(mis)reportable IBAN set up that should last a while
and use stablecoins as they are new offshores
 

ibansepacom

Registered Member
Joined
Jul 9, 2020
Messages
57
Reaction score
11
From my own experience I can say if fintech does not have an office and does not operate under your country bank they are not obliged to report you to anyone.

It can vary on country but most financial market members must report you once your account exceeds 15k or so.

Now the problem is you won’t be able to transfer 100k easily on any account, because you will be asked to upload documents to prove your income source. If you don’t comply your account will be closed for good.

I got a few fintech accounts blocked because of cryptocurrency payments.
cryptocurrency payments are getting more and more common and work fine with proper counterparties
 

VSYNC

Jr Vip
Jr. VIP
Joined
Nov 20, 2019
Messages
3,162
Reaction score
8,611
Website
www.staggeringbeauty.com
A mid 4 figures number should not trigger a flag.
My thoughts exactly.

dont expect to evade anything through revolut especially if you have no clean source of funds
There was nothing dodgy about the source, Revolut are a joke from a support point of view though.

the only option is to have a non(mis)reportable IBAN set up that should last a while
and use stablecoins as they are new offshores
Any further elaboration on this would be more than welcome, I'm particularly interested in stablecoins
 

ibansepacom

Registered Member
Joined
Jul 9, 2020
Messages
57
Reaction score
11
Any further elaboration on this would be more than welcome, I'm particularly interested in stablecoins

there are different currencies that back stablecoins
the http://stasis.net/sellback I like has an option to buy it using a visa/mastercard so you can run acquiring on top of it
 

jnrn3

Newbie
Joined
Apr 28, 2021
Messages
1
Reaction score
0
Stablecoin... catch 22 though, to purchase them, you need KYC. So again the problem with large amounts triggering *something. Am I right or am I right?
 
Status
Not open for further replies.
Top