Trump’s Big Beautiful Bill Reveals Relevant Details
One of the provisions indicates a 5% consumption tax on remittances sent abroad by non-U.S. citizens, visa workers, and green card holders, aimed at attracting foreign workers and encouraging the spending of U.S. dollars domestically.
Background Summary
(Previous context: 2025 updates on cryptocurrency investor tax regulations: What are the differences between domestic and foreign income? Can losses from virtual currencies be recognized?)
(Contextual background: Why should cryptocurrency investors pay attention to the U.S. House passing the “U.S.-Taiwan Double Taxation Avoidance Act”?)
Attention U.S. Stock Investors and Overseas Cryptocurrency Investors!
Recently, details of the “Big Beautiful Bill” (The one big beautiful bill) promoted by the Republican Party have been revealed. Among the provisions is a proposal to impose a 5% tax on international remittances sent abroad by all non-U.S. citizens, including visa workers and green card holders. If implemented, this will impact overseas investors.
Details of the Big Beautiful Bill
Last Friday, the 389-page Big Beautiful Bill promoted by U.S. President Trump was rejected by the House Budget Committee. The Republican Party, which initiated the bill, plans to modify the details and continue pushing it forward. However, a specific clause in the bill has drawn attention: it imposes a 5% excise tax on international remittances sent overseas by non-U.S. citizens, including holders of H-1B work visas, F-1 student visas, and green cards.
It is understood that on page 327, this provision explicitly states that there are no minimum or maximum limits on the remittance amounts. This means that small-scale retail investors sending money abroad to invest in U.S. stocks and cryptocurrencies could be affected.
Reason for the Tax
Statistics indicate that nearly 2.3 million Indians remain in the U.S. through various visa programs. Reports suggest that the U.S. government has found that Indians tend to “live frugally” and send their earned U.S. dollars back to India, which has led to scrutiny from the Trump administration. Reports indicate that the Trump administration suspects that this behavior reduces the likelihood of spending U.S. dollars domestically, with over $23 billion being remitted back to India in 2023 alone.
In addition to Indians, Taiwanese individuals relying on U.S. foreign brokers to invest in U.S. stocks, as well as those using overseas exchanges like Bitfinex, Kraken, and Bitgo, could also be affected as they send back funds under Taiwan’s annual $700,000 tax exemption limit. It remains unclear when this bill will actually pass, but under the Republican Party’s dominant governance in the U.S., its passage seems to be only a matter of time. Therefore, relevant investors must understand the risks that these regulations pose to international remittances to avoid unnecessary losses.
