On January 1, 2026 (local time), new U.S. tax measures targeting certain cross-border remittances officially took effect. According to relevant regulations issued by the U.S. Department of the Treasury and the Internal Revenue Service (IRS), effective January 1, 2026, remittance service providers are required to collect a 1% tax on eligible remittance transactions and report and remit the tax in accordance with regulations.The regulations indicate that this tax applies when the remitter uses cash or similar “physical payment instruments” (including money orders, bank drafts, etc.) as the source of funds for cross-border remittances; however, transactions funded through transfers from U.S. bank accounts or via debit or credit cards are generally not subject to the tax.This measure is part of the "Big and Beautiful" tax and spending bill promoted by the Donald Trump administration. According to U.S. Internal Revenue Service regulations, this tax applies to overseas remitters, including U.S. citizens and residents.