Deposit Money Banks (DMBs) across the country will begin the deduction of outstanding Electronic Money Transfer Levy (EMTL) on foreign currency (FCY) inflows due from January 2021 to December 2023 by January 31, 2024.
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The banks, in emails sent to their customers, explained that the deduction notice came as a result of the Federal Inland Revenue Service (FIRS)’s directive which mandated commercial banks to deduct and remit the electronic money transfer levy on foreign currency transactions.
Previously, the Electronic Money Transfer Levy was solely applicable to accounts receiving electronic deposits of N10,000 and above or its equivalent. But the FIRS in line with the Finance Act 2020 and Stamp Act 2004, has now issued a directive to banks to remit the Federal Government Electronic Money Transfer Levy from foreign currency (FCY) inflows.
Consequently, some banks have begun issuing a notice to their customers on the immediate dedication of the levy. Access Bank said, “We write to inform you of the Federal Inland Revenue Service (FIRS) notice to all banks, in line with the Finance Act 2020 and Stamp Act 2004, to remit the Federal Government Electronic Money Transfer Levy from foreign currency (FCY) inflows.
Previously, the Electronic Money Transfer Levy was solely applicable to accounts receiving electronic deposits of N10,000 and above or its equivalent. However, starting January 2, 2024, the deduction will be extended to FCY inflows equivalent of N10,000 and above, incurring a charge of N50 (FCY equivalent).
The bank further said that in compliance with the notice, outstanding Electronic Money Transfer Levy on FCY inflows from January 2021 to December 2023 are also to be deducted by January 31, 2024.
Similarly, First Bank, in a notice titled, ‘Important Notice: Electronic Money Transfer Levy Deductions Begin on Foreign Currency Transactions’, “In compliance with this directive, a deduction of Fifty naira (N50) only will be applied to every foreign currency (FCY) transaction with an equivalent amount of N10,000 and above.
According to the bank, the FIRS has instructed the deduction of the Electronic Money Transfer Levy on qualifying transactions processed from January 2021 to the last week of December 2023. This, it said, would also be remitted accordingly.
Union Bank said it would begin to deduct the N50 electronic transfer levy for all international transactions from January 1, 2024.
Stanbic IBTC Bank in March 2023, announced the dedication of N50 levy on electronic money transfer from domiciliary accounts.
According to KPMG, the Electronic Money Transfer Levy Regulations, 2022, were issued to provide guidance for the imposition, administration, collection and remittance of the Electronic Money Transfer Levy introduced by the Finance Act, 2020.
“The Regulations provide for a singular and one-off levy of N50 on the recipient of any electronic receipts or transfers of N10,000 or above. For equivalent receipts or transfers carried out in other currencies, the levy will be charged at the exchange rates determined by the Central Bank of Nigeria (CBN)”, KPMG said.
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