BRICS: US Hits India Where It Hurts Them the Most: Remittance Tax
US President Donald Trump is looking to hit BRICS member India where it hurts them the most, which is the remittance tax. The new tax proposal by the House Republicans could impact a significant number of Non-Resident Indians (NRIs), as the bill aims to levy a 5% tax on remittances sent to India from the US.
Also Read: BRICS: 5 Countries Pay 93% of Trade in National Currencies
The bill was first introduced last Monday, where international transfers from non-citizens to BRICS country India will face a 5% tax. The bill, if passed, will affect workers who send money back to their families in India. The 5% tax will be used to help fund tax breaks and also tighten border security measures.
Also Read: BRICS: Tanzania Officially Bans the US Dollar
5% Remittance Tax Could Soon Hit BRICS Member India
Trump has publicly called the legislation “great” and “one big beautiful bill” is also ensuring that Republicans pass the legislation. The 5% tax on remittances to BRICS country India will potentially fund billions to the US Treasury. The latest report highlights that Indian workers send close to $83 billion a year in remittances back to their families in India.
Also Read: This US Sector Will Crash First If BRICS Abandons the Dollar
Therefore, a 5% tax could add close to $4.15 billion to the US Treasury if the new bill is passed. Currently, BRICS member India is the world’s top recipient of remittances. If $100,000 is sent back home, then the IRS gets $5,000 through the remittance tax. Until 2025, remittance was never taxed in the US, making it a first-of-its-kind policy.
The House Republicans aim to pass the bill on Memorial Day, May 26, 2025. Lawmakers hope to get the law signed and roll into action by July 4, Independence Day. Every financial institution and money transfer service will be tasked to collect a 5% remittance tax for money going to BRICS member India. The rule will have no limit, and every transfer, including both big and small, will be subject to taxes.
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BRICS: US Hits India Where It Hurts Them the Most: Remittance Tax
US President Donald Trump is looking to hit BRICS member India where it hurts them the most, which is the remittance tax. The new tax proposal by the House Republicans could impact a significant number of Non-Resident Indians (NRIs), as the bill aims to levy a 5% tax on remittances sent to India from the US.
Also Read: BRICS: 5 Countries Pay 93% of Trade in National Currencies
The bill was first introduced last Monday, where international transfers from non-citizens to BRICS country India will face a 5% tax. The bill, if passed, will affect workers who send money back to their families in India. The 5% tax will be used to help fund tax breaks and also tighten border security measures.
Also Read: BRICS: Tanzania Officially Bans the US Dollar
5% Remittance Tax Could Soon Hit BRICS Member India
Trump has publicly called the legislation “great” and “one big beautiful bill” is also ensuring that Republicans pass the legislation. The 5% tax on remittances to BRICS country India will potentially fund billions to the US Treasury. The latest report highlights that Indian workers send close to $83 billion a year in remittances back to their families in India.
Also Read: This US Sector Will Crash First If BRICS Abandons the Dollar
Therefore, a 5% tax could add close to $4.15 billion to the US Treasury if the new bill is passed. Currently, BRICS member India is the world’s top recipient of remittances. If $100,000 is sent back home, then the IRS gets $5,000 through the remittance tax. Until 2025, remittance was never taxed in the US, making it a first-of-its-kind policy.
The House Republicans aim to pass the bill on Memorial Day, May 26, 2025. Lawmakers hope to get the law signed and roll into action by July 4, Independence Day. Every financial institution and money transfer service will be tasked to collect a 5% remittance tax for money going to BRICS member India. The rule will have no limit, and every transfer, including both big and small, will be subject to taxes.
Read More