The US government is contemplating a new law that will charge a 5 per cent tax on money sent out of the country by non-citizens.
The Bill dubbed 'One Big, Beautiful Bill' slaps a 5 per cent tax on all outbound remittances from the US, exempting only verified US citizens that are using approved providers. "This provision imposes a five per cent excise tax on remittance transfers, which will be paid for by the sender of such transfers.
The provision requires that the tax be collected by the remittance transfer providers, and the remittance transfer providers are responsible for remitting such tax quarterly to the Secretary of the Treasury," the draft bill read in part.
This means that if someone in the US sends Ksh128,750 ($1,000) to their family in another country, Ksh6,437.50 ($50) would be deducted as tax before the money reaches its destination.
