WORLD NEWS
The U.S. has proposed a 5% tax on international remittances made by non-citizens.
By Aniket Chakraborty
May 17, 2025
Arrow
Arrow
The bill, introduced on May 12, targets temporary visa and green card holders.
2
Arrow
For every $1,000 sent home, NRIs may lose $50 to U.S. taxes.
3
Arrow
India, the top recipient, got $128 billion in FY25—$35.8B came from the U.S. alone.
4
Arrow
This means U.S.-based NRIs could pay $1.79 billion in remittance taxes.
5
Arrow
A tax credit may be available—but the burden could still be heavy for many.
6
Arrow
Experts expect a remittance surge before the law is enforced in June–July 2025.
7
Arrow
Some analysts question the accuracy of U.S. remittance numbers to India.
8
Arrow
Dollar-denominated flows from elsewhere may be misclassified as U.S. origin.
9
The diaspora reacts with concern as Washington tightens remittance policy for migrants.
10