REMIT Act

The REMIT Act would create a new, separate tax regime on remittance transfers. A 15% excise tax would be imposed on each remittance transfer, with the sender responsible for paying the tax and remittance providers collecting and remitting it to the Treasury. There is a narrow exception for “qualified remittance transfer providers” who verify that the sender is a U.S. citizen or national; in that case, the tax would not apply to transfers made through those providers. The bill also adds a refundable credit (36C) for U.S. citizens and nationals against their income tax for taxes paid under the new remittance tax, subject to documentation and substantiation requirements. To support administration, remittance providers would face new reporting (Sec. 6050AA) and information-return obligations (Sec. 6050BB), and penalties would be updated to reflect these changes. The act provides effective dates: generally for transfers after December 31, 2025, with the tax-credit provisions applying to tax years ending after that date.