The  One, Big, Beautiful Bill (Act), which is now under Senate review, proposes a 3.5% tax on all remittances sent by non-US citizens to foreign countries, regardless of the transfer amount. 

The US House of Representatives passed the One, Big, Beautiful Bill (Act) on 22 May 2025, and it is now under Senate review.

The One, Big, Beautiful Bill, makes the 2017 Trump tax cuts permanent, provides additional tax relief for working families and small businesses, rewards investment and manufacturing in America.

However, there is one aspect of this bill that could significantly affect the remittance industry and may lead to unintended consequences.

The Act proposes a 3.5% tax on all remittances sent by non-US citizens to foreign countries, with no minimum transfer amount. Set to take effect next year, the tax would be collected by remittance providers, apps, and banks and forwarded to the US Treasury.

The Federal Executive has publicly opposed the pending draft legislation in the US Senate.

On 16 May 2025, Mexico’s Federal Executive issued an official statement rejecting the proposal, citing legal concerns over discrimination and double taxation.

Roberto Velasco, Head of the North America Unit at the Foreign Affairs Ministry, noted that the proposed remittance tax targets only non-US citizens (including permanent residents and employment visa holders), creating a discriminatory distinction between US citizens and foreign nationals.

Mexico contends the tax would breach the Mexico–United States Income Tax Treaty (1992) by imposing an additional levy on income already taxed in the US, thereby violating the treaty’s objective of eliminating double taxation and ensuring fair treatment of cross-border taxpayers.