Deposit money banks (DMBs) have continued to inform their customers about the directive handed them by the Federal Inland Revenue Service (FIRS) to deduct the backlog of the Electronic Money Transfer Levy (EMTL) on previous foreign currency transactions carried out by January 31, 2024.
The directive from the FIRS said deductions will cover transactions between 2021 and 2023. Recall that last month, the FIRS directed deposit banks to deduct and remit the EMTL on foreign currency (FCY) transactions going forward. The tax body said the levy was in line with the Finance Act 2020 and Stamp Act 2004, which impose an EMTL on the transfer of money to any financial institution on any type of account.
EMTL regulations provide for a singular and one-off levy of ₦50 on the recipient of any electronic receipts or transfers of ₦10,000 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).
The regulations mandate the receiving bank to collect and remit the Levy to the FIRS by the next working day after the transaction date or on such other date as prescribed by the FIRS. In addition, the receiving bank is required to deduct the Levy from the amount payable if the receiver is a walk-in customer who does not have an account with the bank.
Indeed, in the notice sent by Access Bank to customers, titled ‘Important Notice’, it said: “We write to inform you of FIRS notice to all banks, in line with the Finance Act 2020 and Stamp Act 2004, to remit the EMTL from foreign currency (FCY) inflows.
“Previously, the EMTL 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 to N10,000 and above, incurring a charge of N50 (FCY equivalent).
“In compliance with this notice, outstanding EMTL on FCY inflows from January 2021 to December 2023 are also to be deducted by January 31, 2024. We appreciate your understanding and thank you for trusting Access Bank.”
