Just as international markets begin to recover from Trump’s Liberation Day Tariff saga, another disruptive policy is looming – one with serious implications for globally mobile professionals, international businesses, and the advisors who support them.
On May 22, the U.S. House of Representatives narrowly passed the One Big Beautiful Bill Act (OBBB) by a single vote. Among its proposed measures is a 3.5% excise tax on international money transfers made by non-U.S. citizens. With a Republican-controlled Senate expected to follow suit, potentially by July 4, the new tax could come into effect as early as January 1, 2026.
Here’s what’s in the bill, who’s at risk, and what global businesses and advisors should be doing now to stay ahead.
What’s in the Bill?
The One Big Beautiful Bill Act is a broad legislative package aimed at tightening U.S. immigration enforcement. While headlines have focused on deportations, visa crackdowns, and the recent Harvard controversy involving international students, the financial provisions could prove just as disruptive.
At its core: a 3.5% tax on outbound remittances by non-citizens. This includes transfers of U.S.-sourced income, from salaries and savings to restricted stock units (RSUs) and proceeds from asset sales. Even personal transfers (like moving money from your U.S. account to one overseas) may be taxed under the current draft.
To put this into perspective: a client with a US$10 million stock portfolio could face a US$350,000 tax bill when remitting funds offshore after 2026.
While the funds raised are earmarked for expanding border enforcement, immigration infrastructure, and detention facilities, it also signals the US’s growing inclination toward financial nationalism, using taxation to slow the outward flow of capital and retain wealth within its borders.
Operational and Compliance Impacts
While individuals will be directly affected, businesses will undoubtedly feel the secondary effects. The ability to move money quickly and securely is fundamental to international operations, and the OBBB Act could undermine this, increasing costs and adding delays at a time when speed and agility are critical.
Under the Act, transfers over US$5,000 per day will trigger stricter Know Your Customer (KYC) checks and enhanced reporting requirements. For underprepared institutions, that means slower transactions, more friction, and higher compliance costs, many of which will likely be passed on to clients.
As a result, businesses need to rethink where they earn their income, hold cash reserves, and how they compensate cross-border employees.
Moreover, such delays may result in a domino effect; if funds cannot be moved swiftly, businesses may find themselves more exposed to short-term currency fluctuations, compliance backlogs, or tax liabilities that were previously off the radar.
Perhaps the most underappreciated consequence of the OBBB Act is its potential to increase liquidity risk. The longer it takes to move money across borders, the more pressure it places on working capital and operational cash flows. For financially sound businesses, this may be manageable, but for others, particularly smaller enterprises or those navigating tight margins, any delay in incoming or outgoing payments can be disastrous.
What Global Businesses Should Do
If you or your clients operate across borders, now’s the time to prepare. Key steps include:
- Plan for additional costs – Factor in the 3.5% tax when managing liquidity events, savings transfers, or stock liquidations
- Review global exposure – Identify clients with offshore holdings, upcoming equity events, or plans to repatriate capital
- Act early – If circumstances allow, moving funds before 2026 could avoid the new tax
- Mitigate FX risk – A mix of tax and currency swings can erode value; consider hedging or forward contracts to protect margins
Conclusion
If passed, the OBBB Act could inject new volatility into global markets. For internationally exposed clients, the risk isn’t just the tax itself, but the broader fallout: delayed transactions, compliance slowdowns, and reduced liquidity.
Understanding these dynamics and factoring them into current payment contracts may just be the difference between resilience and disruption.
