United States Imposes 1% Remittance Tax on Certain Cross-Border Transfers

Odaily News: 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 January 1, 2026, remittance service providers are required to collect a 1% tax on eligible remittance transactions on behalf of the government and file and pay the tax as stipulated. The relevant regulations indicate that this tax will apply when a remitter uses cash or similar "tangible payment instruments" (including money orders, cashier's checks, etc.) as the source of funds for a cross-border transfer. However, transactions funded through U.S. bank account transfers, or using debit cards, credit cards, and similar methods, are typically not subject to this tax. 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 individuals sending money abroad, including U.S. citizens and residents.

Professional tax analysis suggests that "cryptocurrency and stablecoin transfers are not considered taxable remittance transfers." In other words, stablecoins are not classified as "tangible payment instruments" within the scope of this tax, but the actual situation has not yet been definitively determined.