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What is remittance and how does it work?
Remittances are funds transferred from migrants to their home country. They are the private savings of workers and families that are spent in the home country for food, clothing and other expenditures, and which drive the home economy.
What is remittance CRA?
A remittance is the amount you have to send to the CRA, after paying remuneration or giving a taxable benefit to a recipient. For information about calculating source deductions and your share of CPP and EI (if applicable), go to Payroll deductions and contributions.
What is remittance in banking?
A remittance is a transfer of funds. A cash remittance is when the sender deposits cash instead of using a debit or credit card, cheque, or direct bank transfer to remit. For a cash remittance to a bank account, the sender needs to provide the beneficiary’s full name, bank account details, including SWIFT code.
Are remittances taxable?
In general, profits remitted abroad by a branch office are subject to a 15% tax rate, based on the total profits applied or earmarked for remittance, without any deduction for the tax component thereof. A lower rate may apply under certain tax treaties.
What is difference between remittance and payment?
The difference between a remittance and a payment is, in most cases, a matter of whether money is travelling overseas. The word, “remittance”, comes from the verb, “to remit”, or to send back. So, whilst all remittances are payments, not all payments are necessarily remittances.
What is purpose of remittance?
Key Takeaways: There are two types of remittances in India and each has its purpose. As an NRI, you may send money to India for various reasons – to support your family, make investments or maintain an NRE account. This transfer of funds from overseas to India and back is known as a remittance.
How do I receive money from remittance?
Ways to receive money in Nigeria
- Cash pickup. The money you send to Nigeria will be ready to collect instantly from any FCMB branch.
- Bank transfer. Bank transfers to Nigeria arrive within minutes and are accepted by all major banks.
- Airtime top up. Send mobile credit to prepaid phones on the leading networks in Nigeria.
What is the purpose of remittance?
Many people use remittance as a means to send money back to their home country to provide financial support. Remittances are also used to aid developing countries and make up a portion of the gross domestic product (GDP).
What are sources of remittance?
In other words remittance can be defined as any form of money transfer or payment made from your working country to home country. There are different sources of remittance such as, check, draft and other electronic ways. It also refers to the amount of money being sent in order to get rid of an obligation.
What does reverse remittance mean?
Reverse Remittances. Money sent to help immigrants struggling in rich countries (such as the U.S.) by friends and family in less-developed countries (such as Mexico).
What is the meaning of a remittance advice?
In short, remittance advice is a proof of payment document sent by a customer to a business. Generally, it’s used when a customer wants to let a business know when an invoice has been paid. In a sense, remittance slips are equivalent to cash register receipts. They’re particularly helpful when it comes to matching up invoices with payments.
What is the meaning of remittance in accounting?
A remittance is a payment of money that is transferred to another party. Broadly speaking, any payment of an invoice or a bill can be called a remittance. However, the term is most often used nowadays to describe a sum of money sent by someone working abroad to his or her family back home.