{"id":333029,"date":"2025-06-25T22:42:15","date_gmt":"2025-06-25T14:42:15","guid":{"rendered":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/?p=333029"},"modified":"2025-06-25T22:42:17","modified_gmt":"2025-06-25T14:42:17","slug":"commentary-ph-remittances-face-headwinds-with-trumps-one-big-beautiful-bill","status":"publish","type":"post","link":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/commentary-ph-remittances-face-headwinds-with-trumps-one-big-beautiful-bill\/","title":{"rendered":"Commentary: PH remittances face headwinds with Trump’s One Big Beautiful Bill"},"content":{"rendered":"\n

US House of Representatives approves One Big Beautiful Bill<\/strong><\/p>\n\n\n\n

The One Big Beautiful Bill was approved by the US House of Representatives in May 2025 and is now under Senate review. If and when it becomes a law, non-U.S. citizens, including green\u2010card holders, visa holders (H-1B, L-1), temporary residents, and undocumented immigrants, would face a 3.5% excise tax on all personal remittances sent abroad. Transfers by verified U.S. citizens or nationals are exempt. The tax applies regardless of transfer size and is collected at the point of transfer by banks or remittance providers.<\/p>\n\n\n\n

Reduction of PH remittance inflow<\/strong><\/p>\n\n\n\n

Deutsche Bank Research said Philippine remittances have been \u201csluggish\u201d in recent months and face more downside risks if the so-called \u201cOne Big Beautiful Bill\u201d is signed into law in the US. The bank said that the imposed tax could lead to a 1.4% decline in Philippines\u2019 remittance inflow or equivalent to 0.1% of Philippines\u2019 GDP, which is relatively minimal.<\/p>\n\n\n\n

Middle East > Americas<\/strong><\/p>\n\n\n\n

As of 1Q 2025, America has contributed around 45% of total overseas Filipinos (OF) remittances when categorized by region. This is significantly lower than the remittances in the past few years which floated above 45% and as such could further lower (in a minute level) if the OBBB is passed by the Senate without any revisions to lower or remove the excise. Despite the US being a big contributor to remittances on which many Filipino families rely on, we believe that the ongoing conflicts in the Middle East has a more material effect. Prolonged unrest in the region can potentially cause job losses or scare OFWs away from the region, thus forcing them to come back to the Philippines.<\/p>\n\n\n\n

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<\/p>\n","protected":false},"excerpt":{"rendered":"

Here\u2019s a commentary on an important issue or event affecting the stock market<\/p>\n","protected":false},"author":6,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1124,11],"tags":[],"class_list":["post-333029","post","type-post","status-publish","format-standard","hentry","category-commentaries-special-reports","category-special-reports","generate-columns","tablet-grid-50","mobile-grid-100","grid-parent","grid-33"],"_links":{"self":[{"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/posts\/333029","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/users\/6"}],"replies":[{"embeddable":true,"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/comments?post=333029"}],"version-history":[{"count":1,"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/posts\/333029\/revisions"}],"predecessor-version":[{"id":333031,"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/posts\/333029\/revisions\/333031"}],"wp:attachment":[{"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/media?parent=333029"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/categories?post=333029"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/tags?post=333029"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}