Proposed U.S. excise tax on money transfers could hit some cross-border clients

by May 30, 2025Article, News

There have been many developments coming from the White House since President Trump’s term began earlier this year. Most recently, President Trump has shared the Big Beautiful Bill, and Matt Altro, our President & CEO, spoke with Investment Executive to get his take on how non-US citizens will be impacted with respect to their cross border planning.

You can see part of Matt’s answers in the excerpt below, or you can click here to view it on the Investment Executive website.

Proposed U.S. excuse tax on money transfers could hit some cross-border clients

  • By Michelle Schriver
  • May 29, 2025

The measure “seems to be designed to punish non-U.S. citizens who are sending money back to their home countries,” said Matt Altro, president and CEO of MCA Cross Border Advisors Inc. in Montreal. “This is basically … a 3.5[%] net worth tax for some people.”

The Trump administration’s tax bill currently before the U.S. Senate includes a proposal that would tax money transfers from the U.S. sent by non-U.S. citizens, with potential implications for some cross-border clients.

One of the bill’s proposals is a 3.5% excise tax on remittance transfers made by non-U.S. citizens in the U.S. (and by non-U.S. nationals, such as those in a U.S. territory) to recipients outside the country. U.S. financial institutions and money transfer providers would be required to submit detailed information returns about their money transfers, and the measure would take effect in 2026. The proposal provides a refundable tax credit in cases where U.S. citizens, green card holders and those with work visas incur the tax.

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Matt C. Altro

Matt C. Altro

President & CEO

MCA Cross Border Advisors, Inc. is a registered investment adviser. Information presented is for educational purposes only and does not intend to make an offer or solicitation for the sale or purchase of any specific securities, investments, or investment strategies. Investments involve risk and, unless otherwise stated, are not guaranteed. Be sure to first consult with a qualified financial adviser and/or tax professional before implementing any strategy discussed herein. Past performance is not indicative of future performance.>