The United States imposes a 1% remittance tax on certain cross-border remittances

Odaily Planet Daily reported that on January 1, 2026, local time, new tax measures targeting certain cross-border remittances officially took effect in the United States. According to regulations from the U.S. Department of the Treasury and the Internal Revenue Service (IRS), starting from January 1, 2026, remittance service providers are required to withhold a 1% tax on qualifying remittance transactions and report and pay the tax as required. The regulations specify that when a remitter uses cash or similar “physical payment tools” (including money orders, bank cashier’s checks, etc.) as the source of funds for cross-border remittances, they will need to pay this tax; however, transactions funded through transfers from U.S. bank accounts or using debit cards, credit cards, and other methods generally fall outside the scope of taxation. This measure is part of the “Big and Beautiful” tax and spending bill promoted by the Trump administration. According to IRS regulations, this tax applies to overseas remittance senders including U.S. citizens and residents. Professional tax analysts believe that “cryptocurrency and stablecoin transfers are not considered taxable remittance transfers.” In other words, stablecoins are not classified as “physical payment tools” within the scope of this tax, but the actual situation remains uncertain.