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On June 4, 2025, the President of the United States, Donald J. Trump, issued a formal proclamation instituting new travel restrictions on the entry of foreign nationals from nineteen specified countries. These restrictions, based on “identity management and information-sharing practices”, took effect on June 9, 2025, at 12:01 a.m. Eastern Daylight Time. The measures encompass both immigrant and nonimmigrant visa applicants and are designed to reinforce national security and improve screening procedures.

The proclamation, entitled Restricting The Entry of Foreign Nationals to Protect the United States from Foreign Terrorists and Other National Security and Public Safety Threats and issued pursuant to Executive Order 14161 of January 20, 2025 (Protecting the United States From Terrorists and Other National Security and Public Safety Threats) identified nineteen countries subject to entry restrictions, with a mandate for periodic reassessment to determine their continuation, modification, or removal.

Countries Subject to Full Restrictions

Afghanistan
Burma
Chad
Republic of the Congo
Equatorial Guinea
Eritrea
Haiti
Iran
Libya
Somalia
Sudan
Yemen

Countries Subject to Partial Restrictions*

Burundi
Cuba
Laos
Sierra Leone
Togo
Turkmenistan
Venezuela

*Consular officers are also directed to limit visa validity for all affected nonimmigrant categories where legally permissible.

Exceptions:

The following individuals are exempt from these restrictions:

Persons physically present in the U.S. prior to June 9, 2025, or holding a valid visa
Lawful permanent residents of the U.S.
Dual nationals traveling with passports from countries not subject to restrictions
Diplomats, NATO personnel, and staff of international organizations
Athletes and teams participating in major international events
Immediate family members with verified documentation of U.S. citizens.
Adoptions (classified under IR-3, IR-4, IH-3, IH-4 visa categories)
Afghan and U.S. government special immigrant visa holders
Religious and ethnic minority immigrants from Iran facing persecution
Individuals entering for critical national interests, including witnesses in criminal proceedings

Note: These restrictions do not invalidate existing visas and do not apply to asylum seekers, refugees currently in the U.S., or individuals protected under the Convention Against Torture (CAT).

U.S. and Foreign Tax Considerations:

Avoidance or Delayed in U.S. Tax Residency (Substantial Presence Test): Foreign nationals barred from entering the U.S. may not delay or avoid U.S. federal and state tax residency otherwise expected. Residence in countries outside the U.S. may similarly be established or extended.
Changes in Tax Obligations: Remote work outside the U.S. may increase or decrease tax obligations, for residents and nonresidents alike.
Reporting and Withholding Obligations, Employment Taxes, and Benefits: Employers and payors must consider the impact of remote work on U.S. and foreign reporting and withholding obligations, benefits plan eligibility, qualification for U.S. social security numbers, etc., particularly if individuals are permitted to work outside the U.S. for U.S. companies or will be paid in advance of services being performed.
Impact on Treaty Benefits (e.g., Turkmenistan and Venezuela): Eligibility for benefits under applicable tax treaties may be impacted.
Permanent Establishment (PE) Risks: Remote work abroad for U.S. companies may trigger PE risks, exposing U.S. companies to foreign taxation.

Global Mobility Impact & Considerations:

Suspension of U.S. Visa Categories: Entry restrictions limit international mobility (including business travel, temporary assignments, and moves).
Business Disruptions: Staffing shortages may cause delays and impact on staffing budgets.
Stranded Employees: Employees outside the U.S. may be unable to return, disrupting employment and residency.
Compliance Challenges: Employers may face complex compliance with cross-border tax, labor, and benefits.

Employer Considerations:

Mobility Planning: Strategize local recruitment, efficient remote work solutions, and strengthen immigration & payroll compliance.
Cost Analysis: Reassess costs of cross-border assignments and business travel, including tax equalization, relocation, and compliance expenses.
Policy Review: Assess current policies for relevance and required compliance.

Let Us Assist You!

We encourage you to engage with your Andersen contact to obtain comprehensive insights regarding the implications of this recent announcement on your mobility programs, and to receive expert support with workforce impact assessments, policy revisions, and strategic planning.