"The One Big Beautiful Bill" aims to put a 5% remittance tax in place for non-US citizens sending money abroad. It's expected to become law around June-July.
So presumably, anyone in the US not a USC will pay the 5% to send money abroad.
Questions:
- are remittances to yourself exempted?
- what happens when an immigrant leaves and takes they money with them? Is the 5% tax still payable?
5% Remittance Tax?
Moderator: Mark T Serbinski CA CPA
Re: 5% Remittance Tax?
That 5% remittance tax raises a ton of practical and ethical questions. It’s not clear how “remittance to self” would be treated, if you’re wiring funds to a foreign account in your name, that could still technically count as a cross-border transfer. Enforcement could be a nightmare
Re: 5% Remittance Tax?
The proposed 5% was reduced to 3.5% by the House. Nonetheless, that's not much comfort. I'm really wondering about transfers to oneself.
Re: 5% Remittance Tax?
If the bill becomes law as written, the 5% remittance tax would likely apply to most cross-border transfers by non-citizens, including money sent to oneself. However, legislation like this often goes through amendments, so exemptions (like transfers to your own foreign account or permanent departures) might be added