By Admin 
Hire act 2025: The recent policies of Trump administration have increased India’s difficulties. After putting a huge tariff on Indian goods, now the service exports of America have come on the target of America. A new bill Halting International Relocations of Employment Act has been placed in the US Senate. That is, America is preparing to impose 25 percent tariffs on the working outsourcing companies. If this proposal is made a law, then the Indian IT industry may get a big shock. Industry experts say that due to this tax, the burden of American companies can increase by about 60 percent.
Shock to Indian IT industry
If this proposed law related to outsourcing came into force from next year i.e. January 1, 2026, American companies will have to reconsider their global outsourcing model. Failure to do so, they will have to pay the state and local taxes as well as excise duty, which will increase the cost manifold.
The American Republican Senator Berney Moreno (Ohio) has introduced the Halting International Relations of Employment (HIRE) Act. If it passes from the US Parliament, then American companies will have to pay up to 25 percent tax on employment to foreign workers. Whatever revenue will be received from the proposed law, it will be spent on the development programs of the middle class of America.
What is the definition of outsourcing?
In this proposed Act, outsourcing is defined by the American company or taxpayers as any service fee, premium, royalty or other payment paid to the foreign unit, which provides direct or indirect benefits to the consumers of America.
Experts believe that this tax is a kind of excise, not corporate income tax. This will only affect the services that American customers will directly use. This situation can be very challenging for Indian IT companies because America is their largest market.
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