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> 3.5% remittance fees on sending money out of the US: The version of the bill that passed a 1% excise is applicable "only to any remittance transfer for which
by unmole 1y ago
> 3.5% remittance fees on sending money out of the US:
The version of the bill that passed a 1% excise is applicable "only to any remittance transfer for which the sender provides cash, a money order, a cashier’s check, or any other similar physical instrument".
- zhivota 1y agoOk thank you I was really worried for a second. Capital controls are on the bingo card but I was hoping it wouldn't come yet.
- ndiddy 1y agoFor comparison, India taxes remittances at 20%.
- kondu 1y agoThis is not true. There's a TCS of 20%, which is an advance tax payment that you can claim back in your income tax returns at the end of the year, and it not an additional tax. This is just a (bad) mechanism to stop black money from leaving the country.
- ndiddy 1y agoThanks I didn't realize that it was refundable, I guess "India makes people loan 20% of their foreign remittances to the government interest-free" would be more accurate.
- unmole 1y ago> "India makes people loan 20% of their foreign remittances to the government interest-free" would be more accurate. It wouldn't. The TCS can be offset against other tax liabilities. The government pays out 6% interest on excess tax payments. For reference, 364 day T-bills are currently yielding ~5.5%. The idea is to force reporting and add friction. Not raise revenue.