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Time of India
16-05-2025
- Business
- Time of India
Desi diaspora set to take $1.6 billion hit as US plans bill to tax remittances
A proposed US bill, dubbed 'The One Big Beautiful Bill,' threatens to impose a 5% remittance tax on non-US citizens, including H-1B and green card holders, sending money abroad. This could significantly impact the Indian diaspora, who remit approximately $32 billion annually to India. If enacted, Indians in the US could face a $1. Its official title is — The One Big Beautiful Bill — but it contains a sting for lakhs of Indians in the US, be they non-immigrant visa holders (like H-1B) or green card holders. Once this bill is enacted, anyone who is not a US citizen and who remits money outside the country will have to pay a remittance tax of 5%. Lately, the US has emerged as the largest source country for remittances into India, attributed to both the size of Indian diaspora and their income levels in America. According to Indian foreign ministry, there are nearly 45 lakh overseas Indians in the US, including nearly 32 lakh PIOs. According to a remittance survey published by RBI in March, of the total remittances of $118.7 billion in 2023-24, nearly 28% or $32 billion were from the US. If this bill is enacted, even if we assume the remittance figure from the US to be constant, the Indian diaspora will end up paying $1.6 billion as remittance tax. 'The One Big Beautiful Bill' calls for tax equal to 5% of remittance amount by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like 지방보다 독소가 문제? '식욕·배변·붓기까지 잡았다' 진작할걸~ 신현재 중년 복부비만 개선 더 알아보기 Undo The bill is the proposed tax plan released recently by the US House Ways and Means Committee. Tucked away in page 327 of the 389 page document is a section on remittances, which calls for a 'tax equal to 5% of the amount of such transfer'. As no exemption threshold limit has been set, it would also impact transfers of small denominations. It adds that this shall not apply to any remittance-transfer where the remittance transfer provider is a 'qualified remittance transfer provider' and the sender is a 'verified US sender'. The latter is then defined to mean a citizen or national of the US. In other words, if an H-1B holder or an L-1 (who is in US on an intra company transfer) or even a green card holder remits money to his family (say parents) in India, or remits money for the purpose of investments – say in Indian securities or real estate, the remittance will be subject to a 5% withholding by the transfer provider (say US bank). The House of Representatives aims to pass this bill in May itself and it will then move to the Senate. According to cross-border investment experts, the bill is likely to sail through and may be law by June-July. They are advising the Indian diaspora to try and remit larger funds in the coming weeks to escape the remittance tax.
Bloomberg
15-05-2025
- Business
- Bloomberg
SALT Caucus Holds Out on Tax Bill Support
"Balance of Power: Late Edition" focuses on the intersection of politics and global business. On today's show, Rep. Blake Moore (R) Utah discusses the US House Ways and Means Committee passing its tax bill along party lines without resolving the SALT cap. Jen Gavito, The Cohen Group Senior Advisor, talks about the significance of President Trump meeting with Syrian Leader Ahmed Al-Sharaa in Saudi Arabia. Rohit Kumar, PWC Washington National Tax Officer Principal & Co-Leaders shares whether or not the SALT Cap will make or break Trump's tax bill. Representative Nick LaLota (R) New York discusses how the tax cuts members of the House want in the tax bill will not be extended if the tax cap of SALT is not raised. (Source: Bloomberg)
Bloomberg
14-05-2025
- Business
- Bloomberg
SALT Will Be Ongoing Discussion: Rep. Moore on Tax Bill
Rep. Blake Moore (R) Utah discusses the US House Ways and Means Committee passing its tax bill along party lines without resolving the SALT cap. He talks about how the government possibly will plan to pay for no taxes on tips, no taxes on overtime, and the latest on SALT. Representative Moore also weighs in on whether or not the debt limit will impact any discussions. He speaks with Kailey Leinz and Joe Mathieu on the late edition of Bloomberg's "Balance of Power." (Source: Bloomberg)
