The HIRE Act imposes a 25% excise tax on payments by U.S. taxpayers to foreign persons for services benefiting U.S. consumers.
The Halting International Relocation of Employment Act, also known as the HIRE Act, amends the Internal Revenue Code to introduce a 25% excise tax on payments made by U.S. taxpayers to foreign persons for services provided to U.S. consumers. This tax applies to payments made after December 31, 2025. The Act defines "outsourcing payment" as any premium, fee, royalty, service charge, or other payment made in the course of a trade or business to a foreign person, with the benefit of the labor or services directed to U.S. consumers.
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