At W & E Income Tax Multiservices Inc., our priority is to keep our clients informed, prepared, and protected from unnecessary costs. A new federal law taking effect January 1, 2026 will change how certain international money transfers are taxed, and we want to make sure you understand what this means for you.

We proudly partner with trusted money transfer providers, including Vigo (Western Union), La Nacional, Viamericas, and Barri, all of which will be implementing secure Verifone payment systems to support compliant and efficient transactions.

What is the new Remittance Tax?

Beginning in 2026, a 1% remittance tax will be applied to international money transfers when specific payment methods are used.

This additional tax applies only if the transfer is paid with:

• Cash
• Money orders
• Cashier’s checks

Example:

If you send $1,000 internationally and pay with cash, an additional $10 tax will be added, on top of any standard transfer fees.

Payment methods that are NOT subject to the tax

The good news is that many commonly used payment options are exempt from the 1% remittance tax. No additional tax will apply when paying with:

• Debit cards
• Credit cards
• Bank accounts
• Digital wallets (such as Apple Pay® or Google Pay™, where available)
• Prepaid cards supported by the transfer provider

Choosing one of these methods allows you to continue sending money without the extra cost.

What this means for YOU as a sender

If you usually pay with cash or similar instruments, you will notice the new tax starting in 2026. However, there are simple ways to avoid it:

• Pay with a debit card in person using our Verifone system
• Use a prepaid card accepted by your chosen transfer service
• Send digitally, when available, using cards or bank accounts

Our team will guide you through the best option based on your needs and the service you choose.

Will this affect the person receiving the money?

No.

The remittance tax only applies to the sender’s payment method. Your family or friends abroad will continue to receive the full amount you send, with no changes on their end.

How W & E Income Tax Multiservices Supports you

We are committed to:

• Educating our clients on upcoming financial changes
• Offering multiple trusted money transfer options
• Ensuring secure, compliant transactions through modern payment terminals
• Helping you choose the most cost-effective way to send money

Whether you use Vigo, La Nacional, Viamericas, or Barri, our staff is trained to help you navigate these changes smoothly.

Key points to remember

• A 1% remittance tax begins January 1, 2026.
• It applies only when paying with cash, money orders, or cashier’s checks.
• Paying with cards, bank accounts, digital wallets, or prepaid cards avoids the tax.
• The receiver is not affected.

Have questions?

Visit W & E Income Tax Multiservices Inc. or speak with one of our representatives. We’re here to help you send money confidently, securely, and wisely.

Source: IRS