Washington/New Delhi, May 16 (UNI) US President Donald Trump's administration has proposed a 5% tax on all international money transfers made by non-US citizens, which could affect the remittances sent home by the large Non-Resident Indian population in the US.
The draft legislation, titled “The One, Big, Beautiful Bill, proposes:
“A five percent excise tax on remittance transfers which will be paid for by the sender with respect to such transfers.
“The provision requires that the tax be collected by the remittance transfer providers and the remittance transfer providers are responsible for remitting such tax quarterly to the Secretary of the Treasury.
"The provision creates an exception for remittance transfers that are sent by verified US citizens or US nationals by way of qualified remittance transfer providers. “
If the Bill is passed, it would affect the money being sent home by Indians, including those on non-immigrant visas such as H-1B and F-1, green card holders, and undocumented immigrants.
It would tax the money at the point of transfer – made through platforms like Western Union, PayPal, or regular banks.
The proposal if approved, could take effect in July 2025, according to reports.
There are an estimated 4.5 million overseas Indians in the US, including nearly 1.3 million NRIs.
India is the world’s largest recipient of remittances, receiving $129 billion in 2023, with the US accounting for roughly $32 billion of this, making it the single largest source country.
UNI RN