REMIT Act

The REMIT Act would establish a new 15 percent excise tax on remittance transfers, which are money transfers sent by individuals in one country to recipients in another country. The tax would be paid by the sender and collected by remittance transfer providers. The bill includes an important exception: U.S. citizens and nationals who send money through qualified remittance transfer providers that verify their citizenship status would be exempt from the tax.

To offset the tax burden on U.S. citizens, the bill creates a refundable income tax credit that allows them to recover the full amount of the excise tax paid during the tax year. To claim this credit, taxpayers must provide their social security number and documentation from the remittance transfer provider. The bill also requires remittance transfer providers to report detailed information about transfers to the Internal Revenue Service, including aggregate transfer amounts and sender information. These new tax and reporting requirements would take effect for transfers made after December 31, 2025, giving businesses and individuals time to prepare for the changes.