For those in US who need to send money, they should pay attention to factor besides the rate itself, for instance, the US remittance transfer tax that’s about to be enforced.

 

The Remittance Tax is Coming! What Will It Bring?

 

The remittance tax stipulated in the US One Big Beautiful Bill Act will be enforce since 1st day of January, 2026.

 

As the Act says, the Remittance Transfer Tax refers to: 1% federal tax on fund sent from US to other countries via methods like cash, money order, cashier's cheque, etc.

 

The remittance tax will be burdened by sender, collected by the remittance service institution and handed over to government. To put it in a nutshell, the remitter’s money will be deducted directly during the transaction.

 

This is the first tax on personal remittance issued by federal government, with a large range beyond anyone’s prediction, including 23 million green-card holders, 14 million non-immigration visa owners(like H-1B employee, H-2A farmer worker), the overseas students, even the U.S. citizens.

 

This tax is targeted on the remittance sent from US to other nations and it even once had a version of 5%. Although it’s finally set as 1%, it’s still a big burden for people working in US and sending money to homeland families.

 

Source: Bipc.com

 

Let’s not forget the 3-5% fee and low rate loss if we send from a bank, so the actual cost of one remittance order could be as high as 6%. No one is willing to see the money from hard work being taken like that!

 

How to avoid the tax legally?

 

Since the tax is hitting the traditional remittance channels really hard, how can we minimize our remittance cost in accordance with the law?

 

The tax act requires that: Some scenarios can be exempted from this tax — digital remittance from online bank, debit card, credit card or securities, etc., which means that cross-border remitters using modern financial channels won’t be affected.

Source: congress.gov

 

To help you handle the situation, Panda Remit is here at your service:

 

1. We can help you avoid the tax legally since we are a digital channel

 

Panda Remit offers transfer service online through USA bank account, debit card and credit card, in accordance with the OBBB’s requirement, meaning you don’t need to pay the 1% tax.

 

2. Our intelligent routing system is faster with lower cost

 

Our system can choose a best route for your fund based on currency type, recipient country policy, so the rate will be close to real-time market rate(to lower your rate loss) and shorten the clearing process(recipient might even get the money in 2 minutes).

 

3. We offer multi-currency service to meed international needs

 

By now we have opened service in more than 40 countries and regions. We support currencies in emerging markets, such as Chinese Yuan, Philippine Peso, Indonesian Rupiah. Our remittance routes covers countries/regions like North America, Asia, EU, meeting localized needs of different expatriates communities.

 

4. Full compliance, safe and secure

 

As a licensed company certified by financial regulators in many countries, Panda Remit uses bank-level data encryption technology, combined with an intelligent risk control system, to ensure the security of funds and user information in each transaction, and completely bid farewell to the risks of illegal channels such as "underground banks".

 

For the vast number of overseas Chinese, international students and family supporters in the United States, this policy has brought both compliance pressure and transformation opportunities. To avoid unnecessary expenses, Chinese friends can adjust the remittance method in advance from now on.

 

By rationally planning the remittance method and choosing an electronic channel, you can minimize costs, make operations more efficient and legally avoid taxes, which is safe and worry-free, so that every penny you earn will be safely delivered to your home~

 

Panda Remit Limited-Time Benefits: Facilitating Secure Money Transfers

 

For new users using Panda Remit for the first time:

1. First transaction: Service fee waived!
2. Exclusive exchange rate subsidy for new users!
3. Flash Payment rate discount: 0% fee for transactions ≤ $500; 0.6% fee for transactions ＞ $500. (Use debit card for Flash Payment, remittance arrives in as fast as 2 minutes! A 1% card fee applies for Flash Payment.)

For existing Panda Remit users:
Occasional remittance red envelopes – stay tuned to app notifications!