Washington, D.C. — A proposed 3.5 percent tax on remittances sent by non-U.S. citizens—covering green card holders and H‑1B visa holders—is included in the legislative package known as the “One Big, Beautiful Bill.” If enacted, the tax would take effect on January 1, 2026.
The measure applies to money transfers to foreign countries, including the Philippines, a recent destination for remittance recipients. Documentation from the Bangko Sentral ng Pilipinas (BSP) shows that remittances from overseas Filipinos totaled USD 38.34 billion in 2024, representing 8.3 percent of the country’s GDP and 7.4 percent of GNI.
Advocacy groups have expressed concern that the tax could reduce remittance flows. Analysts projecting a 5.6 percent decline estimate the cut could amount to approximately USD 500 million annually.
Aquilina Soriano Versoza, executive director of the Pilipino Workers Center of Southern California, stated the tax would create financial challenges for immigrant families.
Josephine Biclar, a leader with the same organization, said inflation has already affected migrants’ ability to send funds, and that an additional tax may reduce their capacity to provide for relatives.
The proposal also introduces new verification requirements. Remittance service providers would be required to confirm the immigration or citizenship status of senders—something they currently do not do—raising questions about implementation and privacy.
BSP Governor Eli Remolona Jr. said the central bank is evaluating the legislation’s potential impact.
