From April 1, Indians will have to pay a 5 per cent additional tax on the EB-5 investor visa, in addition to the increase in price that was announced by the US government in November, a new report has said.
The EB-5 visa is often considered a ticket to getting a US Green Card. The entrepreneurial visa requires applicants to declare an investment and a promise to create at least 10 full-time jobs in the US.
It is often used by start-ups as a way to expand their business into the US market.
“Beginning April 1, there will be a 5 per cent tax on the remittances out of India. Although, this additional tax would impact all visa categories, it will predominantly create a barrier for people investing in the EB-5 visa programme,” American Bazaar said in a report on Friday.
The US legal immigration agency has raised the minimum investment amount of the EB-5 investor visa programme to $900,000 from $500,000 for the first time since the 1990s. With this increase in minimum investment, a 5 per cent additional tax would mean that applicants would have to pay an extra $50,000, when they move money to an escrow account in the US to fulfil their application criterion, the report said.
“The changes to the tax on remittances is a reminder to Indians to carefully plan their tax positions before making their move to the US,” Mark Davies, global chairman, Davies & Associates, said in the report.