The U.S. Senate is considering revisions to the "One Big Beautiful Bill," impacting remittance transfers. The Senate's version reduces the proposed tax on certain money transfers.
The original House version proposed a 5% excise tax on remittance transfers by non-U.S. citizens, effective January 1, 2026. The Senate's revisions aim to limit the tax's applicability.
Under the Senate proposal, a 1% tax would apply to transfers for personal purposes after December 31, 2025, to accounts outside the U.S. Transfers through certain financial institutions would be exempt. This is a significant development for Indian nationals in the U.S.