Latest news with #BeautifulAct
Mint
05-07-2025
- Business
- Mint
Donald Trump's ‘One Big Beautiful Bill Act': How tax on remittances are set to impact Indians in US
Several provisions in Donald Trump's 'One Big, Beautiful Act' raise taxes on immigrants. That includes a new 1 percent tax on transfers of money to foreign countries like India, known as remittances. Many immigrants in the US send money to relatives in their countries of origin. As per the 'One Big, Beautiful Act', signed by Trump on Friday during a July 4 White House picnic, migrants and others who send money abroad would be taxed at 1 percent of the amount of the transfer. The Act states: 'There is hereby imposed on any remittance transfer a tax equal to 1 per cent of the amount of such transfer… The tax imposed by this section… shall be paid by the sender.' As per the rule, the tax will apply to transfers made via cash, money orders, or cashier's checks. However, transfers made from financial institutions or funded through debit/credit cards issued in the US will be exempt. Those using a 'qualified remittance transfer service' will also be exempt. The remittance tax rate was originally set at 5% but it was reduced to 1% in the final version of the Bill — easing concerns among millions of Non-Resident Indians. The rule applies to US residents who aren't citizens, including Green Card holders, H-1B and H-2A visa holders, and international students. This provision in the 'One Big, Beautiful Act' raises the cost for Indians in the US to send money back home. Remittances have long been a critical source of income for low- and middle-income countries, and have continued to exceed foreign direct investment (FDI) flows and ODA combined. According to the Reserve Bank of India's March Bulletin, 'The share of the US in India's total remittances remained the largest, rising to 27.7 percent in 2023-24 from 23.4 per cent in 2020-21.' Meanwhile, the World Bank said in December 2024 that India received a record $129 billion in remittances, the highest in the world, with 28 per cent of that coming from the US alone. There are nearly 54 lakh overseas Indians in the US, including about 33 lakh Persons of Indian Origin (PIOs), according to Ministry of External Affairs' data.
GMA Network
26-06-2025
- Business
- GMA Network
DOF says only 20% of Pinoys in US may be affected by proposed remittance tax
The Department of Finance (DOF) said only 20% of the Filipinos in the United States would be affected by the potential remittance tax of the Trump administration, Malacañang said Thursday. At a press briefing, Palace Press Officer Undersecretary Atty. Claire Castro was asked about the matter. She then cited a response from the chief economist of the DOF, saying that out of the 4.4 million overseas Filipinos in the US, ''only 20% will be affected by the proposed tax proposal, which is seemed to take effect on January 1, 2026, if passed.'' ''The tax will affect non-US citizens including green card holders and those with working visas – each one visa holders. Although, 41% of the remittances are routed to the US, not all of these are from Filipinos in the US because remittances are routed to the US via correspondent banks,'' the DOF said as read by Castro. According to the DOF, the expected loss in remittances might only be as much as $100 million out of the $36.5 billion projected remittances in 2026. It added that the estimated effect was a minimal decline of 0.003% of gross domestic product. ''While we see the estimated effect is minimal in the economy, it may be substantial for many families who solely rely on the remittances from a family member in the US, talking about non-US citizens. Based on the BSP (Bangko Sentral ng Pilipinas) survey, about 90% of the remittances are spent on food and other household needs,'' the DOF added. Under the proposed One Big, Beautiful Act, a 3.5% excise tax would be imposed on all money sent outside the US, including remittances to the Philippines. This means that non-US citizens sending money to their families back home could soon be paying significantly higher fees. Aside from higher fees, the proposed law also mandates stricter verification requirements for remittance centers, raising concerns that it might expose the immigration status of some senders, especially those who are undocumented. The US remains the largest source of remittances to the Philippines, according to data from the BSP. —VAL, GMA Integrated News
DW
22-05-2025
- Business
- DW
US House passes Donald Trump's tax cut and spending bill – DW – 05/22/2025
The legislation would extend tax cuts that were enacted during Trump's first term in "One Big, Beautiful Act" now will head to the Senate, where it is expected to see changes. The Republican-majority US House of Representatives on Thursday passed President Donald Trump's multitrillion dollar tax cut and spending bill, a key part of Trump's policy agenda for his second White House term. The bill passed in a 215-214 vote, with all of the chamber's Democrats voting against the legislation. Two members of Trump's Republican Party also voted against the bill. The legislation would extend tax cuts that were enacted during Trump's first term in office, while also slashing funding for low-income health insurance program Medicaid. More to follow...
