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Time of India
6 days ago
- Business
- Time of India
3.5% Excise Tax on transfers: What Trump's bill means for global Indians, Poonam Mirchandani decodes
Live Events (You can now subscribe to our (You can now subscribe to our ETMarkets WhatsApp channel President Trump and the Republican Government introduced a new bill 'The One, Big, Beautiful Bill', on May 12th 2025, which was approved by the House of Representatives by a 215-214 vote on May 22nd 2025 and is expected to be placed before the Senate later this the many changes proposed by the Government, one key change is introduction of Excise Tax of 3.5% (originally proposed as 5%) which shall be levied on any remittance amount transferred from United States of America ('Remittance Transfers')This change is applicable for all senders of such Remittance Transfers . The only exception being US Citizens or Nationals, subject to such remittance being undertaken by them through a 'qualified remittance transfer provider'.The Bill introduces parameters for qualified remittance transfer provider, which is an entity who enters into compliance agreement with the government agreeing to verify the status of remitter as citizen or national of US ('verified United States sender')If the sender is an individual, credit shall be available for aforesaid taxes paid subject to the verified United States sender mentioning his/her social security number as well as that of spouse (if sender is married) in return of tax for the taxable yearWhat this means simplistically, is that when any person who does not qualify as a verified United States sender, makes a Remittance Transfer, the remittance transfer provider will deduct a sum of 3.5% on the amount of transfer before completing the interesting part is that the Government has also introduced a secondary liability on the remittance transfer provider if they fail to make such deduction and deposit it with the authorities every quarter, they will be liable to pay the unpaid taxes personallyTherefore, every immigrant including Green card holders, immigrants on visas like H1B, L1, L2 etc. all will be impacted by this Remittance Transfer Excise Tax. In fact, even US Citizens if they don't make remittance through a qualified remittance transfer provider will have to pay this taxWhat the bill does not clarify is the definition of 'sender' for the purpose of this proposed Remittance Transfer excise the anti-conduit rules have been extended to remittance transfers, there is no clear provisions on whether corporates, entities, who hold accounts in US and make Remittance Transfers will have to pay this taxThe proposed Bill also does not clarify on how inter correspondent banking transfers be treated especially for international investors who are not US citizen or resident or Green Card holders or any other category of resident alien, but own investments through US brokers and US industry insiders are of the view that the tax will be only applicable for remitters who are resident in the US at time of transfer, how the qualified remittance transfer provider will distinguish such an international investor will be a key point of will be interesting to see how the law will shape up soon, as Senators work on developing changes to the Bill prior to placing it before the Senate later this month for approvalThe Bill does mention the Effective Date for this new Remittance Transfer Excise Tax as being with respect to transfers made after December 31, 2025. Similarly, tax credits, if available, shall apply to taxable years ending after December 31, 2025 NRIs historically have remitted funds earned in the US either back to India or invest them outside the US. In both scenarios, they will now have to pay 3.5% Remittance Transfer Excise Tax on any amounts which they remit after December 31, 2025This may activate a stream of outflow of money from US accounts by NRIs and other immigrants to their home countries or locations outside US to sidestep trigger of aforesaid anticipate families initiating planning for historical funds prior to the changes being implemented as well as restructuring their present account holdings outside post December 31, 2025 this window gets closed especially for individuals who generate regular income in US, who will have no choice but to pay this taxOn a separate note, the Bill puts at rest a constant debate on the sunset clause for US Estate and Gift Tax Exemption the proposed Bill, the original exemption amount of USD 5,000,000 has been substituted with USD 15,000,000 making it effective for taxable years beginning after December 31, will be a relief for many US Persons who are concerned that the current limits of USD 13.99 million will stand reduced to the original number of USD 5 the introduction of the revised provisions this fear will lay at rest as the government now has proposed scaling up the base limit to USD 15 million with future adjustments for inflationGiven the constantly evolving cross border legal and tax landscape, Indian HNIs and family businesses need to reassess their global financial planning . As cross-border tax regimes tighten, having structured, compliant platforms becomes US will continue to be a desired location for Indians while the UK remains a viable wealth gateway, particularly with recent Free Trade Agreement (FTA) gains, but each jurisdiction now carries unique tax implications that must be managed prudently and in a compliant manner with proper planning and advice.(The author is MD, Wealth Planning & Family Solutions, LGT Wealth India): Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
Economic Times
6 days ago
- Business
- Economic Times
3.5% Excise Tax on transfers: What Trump's bill means for global Indians, Poonam Mirchandani decodes
President Trump and the Republican Government introduced a new bill 'The One, Big, Beautiful Bill', on May 12th 2025, which was approved by the House of Representatives by a 215-214 vote on May 22nd 2025 and is expected to be placed before the Senate later this month. ADVERTISEMENT Amongst the many changes proposed by the Government, one key change is introduction of Excise Tax of 3.5% (originally proposed as 5%) which shall be levied on any remittance amount transferred from United States of America ('Remittance Transfers') This change is applicable for all senders of such Remittance Transfers. The only exception being US Citizens or Nationals, subject to such remittance being undertaken by them through a 'qualified remittance transfer provider'. The Bill introduces parameters for qualified remittance transfer provider, which is an entity who enters into compliance agreement with the government agreeing to verify the status of remitter as citizen or national of US ('verified United States sender')If the sender is an individual, credit shall be available for aforesaid taxes paid subject to the verified United States sender mentioning his/her social security number as well as that of spouse (if sender is married) in return of tax for the taxable yearWhat this means simplistically, is that when any person who does not qualify as a verified United States sender, makes a Remittance Transfer, the remittance transfer provider will deduct a sum of 3.5% on the amount of transfer before completing the transaction. ADVERTISEMENT The interesting part is that the Government has also introduced a secondary liability on the remittance transfer provider if they fail to make such deduction and deposit it with the authorities every quarter, they will be liable to pay the unpaid taxes personallyTherefore, every immigrant including Green card holders, immigrants on visas like H1B, L1, L2 etc. all will be impacted by this Remittance Transfer Excise Tax. In fact, even US Citizens if they don't make remittance through a qualified remittance transfer provider will have to pay this tax ADVERTISEMENT What the bill does not clarify is the definition of 'sender' for the purpose of this proposed Remittance Transfer excise tax. Though the anti-conduit rules have been extended to remittance transfers, there is no clear provisions on whether corporates, entities, who hold accounts in US and make Remittance Transfers will have to pay this tax ADVERTISEMENT The proposed Bill also does not clarify on how inter correspondent banking transfers be treated especially for international investors who are not US citizen or resident or Green Card holders or any other category of resident alien, but own investments through US brokers and US banks. Though industry insiders are of the view that the tax will be only applicable for remitters who are resident in the US at time of transfer, how the qualified remittance transfer provider will distinguish such an international investor will be a key point of deliberation. ADVERTISEMENT It will be interesting to see how the law will shape up soon, as Senators work on developing changes to the Bill prior to placing it before the Senate later this month for approvalThe Bill does mention the Effective Date for this new Remittance Transfer Excise Tax as being with respect to transfers made after December 31, 2025. Similarly, tax credits, if available, shall apply to taxable years ending after December 31, 2025 NRIs historically have remitted funds earned in the US either back to India or invest them outside the US. In both scenarios, they will now have to pay 3.5% Remittance Transfer Excise Tax on any amounts which they remit after December 31, 2025 This may activate a stream of outflow of money from US accounts by NRIs and other immigrants to their home countries or locations outside US to sidestep trigger of aforesaid tax. We anticipate families initiating planning for historical funds prior to the changes being implemented as well as restructuring their present account holdings outside US. However, post December 31, 2025 this window gets closed especially for individuals who generate regular income in US, who will have no choice but to pay this taxOn a separate note, the Bill puts at rest a constant debate on the sunset clause for US Estate and Gift Tax Exemption amount. Under the proposed Bill, the original exemption amount of USD 5,000,000 has been substituted with USD 15,000,000 making it effective for taxable years beginning after December 31, 2025. This will be a relief for many US Persons who are concerned that the current limits of USD 13.99 million will stand reduced to the original number of USD 5 million. With the introduction of the revised provisions this fear will lay at rest as the government now has proposed scaling up the base limit to USD 15 million with future adjustments for inflation Given the constantly evolving cross border legal and tax landscape, Indian HNIs and family businesses need to reassess their global financial planning. As cross-border tax regimes tighten, having structured, compliant platforms becomes critical. The US will continue to be a desired location for Indians while the UK remains a viable wealth gateway, particularly with recent Free Trade Agreement (FTA) gains, but each jurisdiction now carries unique tax implications that must be managed prudently and in a compliant manner with proper planning and advice. (The author is MD, Wealth Planning & Family Solutions, LGT Wealth India) (Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
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Business Standard
04-06-2025
- Business
- Business Standard
Green card holder? You still may be banned from buying property in the US
Are you a green card holder living in Ohio—or planning to move there? You may soon face new restrictions on where you can own property. Lawmakers in the Republican-led state have introduced two Bills that would ban foreign nationals and some permanent residents from buying land near military and critical infrastructure zones. House Bill 1 and Senate Bill 88 propose a 40-kilometre restriction zone around military bases, power stations, water treatment plants and gas pipelines. The move, backed by Republicans in the state legislature, is part of a broader effort seen across several US states to restrict land ownership by nationals from countries identified as 'foreign adversaries.' These countries include China, Russia, Iran, North Korea, Cuba and Venezuela. The restriction would also apply to businesses linked to those countries and, in some cases, to individuals holding lawful permanent residency. The impact on Indian immigrants—Ohio's largest foreign-born group, numbering over 100,000—is currently unclear. What about Green card holders already owning land? Earlier drafts of the Senate Bill had required existing landowners from foreign adversary countries to sell their property within two years. That provision has now been dropped. Green card holders who already own property in restricted zones would not be forced to sell under the latest version. 'I strongly believe that Ohio's land should not be for sale to those who seek to destroy the American way of life,' said Senator Terry Johnson, who introduced Senate Bill 88. He told local media that while his version closely mirrors the House Bill, it initially took a stricter line by requiring disposals. However, the Senate committee amended the Bill last week to remove that clause. Ohio is not alone As of June 4, several US states have passed or are considering laws restricting land ownership by nationals from countries identified as foreign adversaries by the US government. These include: Florida: Since 2023, laws prohibit citizens from China, Russia, Iran, North Korea, Cuba, Venezuela and Syria from owning agricultural land or property near military sites. Texas: Senate Bill 17, passed in 2025, bans land purchases by individuals and entities from China, Iran, North Korea and Russia. Georgia: SB 420, enacted in 2024, restricts nonresident aliens from acquiring agricultural land or property within 10 miles of military bases. Indiana: HB 1183, signed into law in 2024, blocks designated foreign adversaries from owning farmland or land near sensitive sites. Louisiana: HB 238, also passed in 2024, prevents foreign adversaries or controlled entities from owning agricultural land. North Dakota: Since July 2023, the state bans foreign adversaries and their entities from acquiring real estate. Mississippi: SB 2519, enacted in 2024, bars nonresident aliens from majority ownership in agricultural land. Nebraska: State laws prohibit foreign entities from holding land titles beyond five years. Minnesota: Ownership of agricultural land is restricted unless held largely by US citizens or permanent residents. Michigan: Nine Bills target foreign land ownership near military sites and farmland, particularly by China, Russia and Iran. North Carolina: Proposed laws would block adversaries from buying farmland or property near military bases. Illinois: HB 1162 and SB 48 would prevent certain foreign entities from acquiring agricultural land or property near critical infrastructure. Kansas: New 2025 legislation restricts property purchases within 100 miles of military facilities by foreign adversaries. Opposition builds against the Bills Civil rights groups, academics and community members have raised concerns that the Bills are too broad and risk discriminating against immigrants. More than 230 people submitted written testimony against the proposals during a recent committee hearing. 'Imagine somebody who risked their life, escaped North Korea and ended up in Ohio,' Xu Lu, a US citizen and college professor from Findlay said at a press conference aired by WTOL 11, which provides news coverage of northwest Ohio, southeast Michigan and beyond. 'This Bill will tell them they do not belong here.' Fourteen-year-old Melody Miao from Oxford testified that the Bill sends the message that some Americans will never be American enough. 'I grew up here, went to school here, learned the Pledge of Allegiance by heart, memorised the Bill of Rights, and watched fireworks every July 4,' she said. 'You are telling people they are not American enough, no matter how hard they try,' she added. The American Civil Liberties Union (ACLU) has warned that similar laws in other states, such as Florida, have already been put on hold pending legal challenges. Lawsuits are expected if Ohio proceeds. 'It is fundamentally wrong, it is profoundly unfair, and it is fuelled by racial animus,' said Gary Daniels, ACLU's chief lobbyist in Ohio in the press conference. 'I struggle to come up with a Bill that has so much hostility against race and nationality as this particular Bill.' Hongmei Li of the Ohio Chinese American Council drew parallels with past discriminatory legislation in the US. 'These Bills represent a step backwards into the darker history of racism in America,' she said. 'It evokes the Chinese Exclusion Act and the internment of Japanese Americans during World War II.' Neither House Bill 1 nor Senate Bill 88 has been scheduled for a final vote. If passed, the Secretary of State will be responsible for maintaining a list of banned entities and updating it twice a year.
Time of India
31-05-2025
- Time of India
Indian-origin man pleads guilty to marriage fraud in West Virginia; he claimed domestic violence to get green card
Indian man, Akaash Prakash Makwana, admits to marriage fraud in West Virginia, US. 29-year-old Aakash Prakash Makwana, an Indian citizen, has pleaded guilty to a marriage fraud which also involved identity theft -- as part of a scheme to evade US immigration laws. US Justice Department said Makwana arrived in the US on a J-1 nonimmigrant visa to work in hotel hospitality and culinary services. This visa is valid for one year and so he conspired with others to marry a US citizen to remain in the US. Makwana arrived in the US in 2019 and continued to stay even though his visa expired in 2020. In 2021, he married a US citizen for $10,000 so that he could apply for a Green card. But in doing so, he falsified a residential lease agreement to make it appear that he and the US citizen whom he married lived together and also added the US citizen's name to his bank accounts and utility bills. Makwana admitted that he committed identity theft when he included the name and signature of the residential property's manager on a false lease agreement. When this marriage scheme failed, Makwala filed a Form I-360 with the USCIS claiming that he suffered domestic violence and emotional abuse at the hands of his US citizen partner. He has now admitted that he filed the petition to continue to stay in the US while his claimed were being considered. Kalee Ann Huff, a 28-year-old US citizen, also pleaded guilty to this marriage fraud. Huff's brother-in-law Joseph Sanchez was part of the conspiracy and he also pleaded guilty. 'This case reflects another unacceptable attempt to undermine our nation's immigration laws, and the commitment of the United States Attorney's Office for the Southern District of West Virginia to enforce those laws to uphold public safety, national security, and the rule of law in our country,' said Acting United States Attorney Lisa G Johnston.
