The Federal Inland Revenue Service (FIRS) has directed deposit money banks (DMBs)
to deduct the backlog of the Electronic Money Transfer Levy (EMTL) on prior foreign
currency transactions completed by January 31, 2024. DMBs have been informing
their customers of this instruction consistently.
According to the FIRS decision, the deductions will apply to transactions between 2021 and
2023. Remember the FIRS ordered deposit banks to withhold and send the EMTL on future
foreign currency (FCY) transactions last month?
According to the tax authority, the levy complied with the Stamp Act of 2004 and the Finance
Act of 2020, which imposes an EMTL on the transfer of funds to any kind of account at any
financial institution.
According to EMTL regulations, recipients of any electronic receipts or transfers of ₦10,000
or more are subject to a one-time, singular charge of ₦50. The fee will be assessed at
exchange rates set by the Central Bank of Nigeria (CBN) for equal receipts or transfers
made in other currencies.
According to the regulations, the receiving bank must collect and send the Levy to the FIRS
by the next business day following the transaction date, or on any other day that the FIRS
specifies. Furthermore, if the recipient is a walk-in client without a bank account, the
receiving bank must subtract the Levy from the total amount owed.
The following was said in the “Important Notice” notice that Access Bank delivered to
its customers: “We are writing to notify you of the FIRS notice that all banks must remit the
EMTL from foreign currency (FCY) inflows under the Finance Act 2020 and the
Stamp Act 2004.”
“Previously, the EMTL was only applicable to accounts receiving electronic deposits of
N10,000 or more or its equivalent. Nevertheless, the deduction would be increased to FCY
inflows of N10,000 and higher as of January 2, 2024, with a N50 (FCY equivalent) fee."
The remaining EMTL on FCY inflows from January 2021 to December 2023 must likewise
be deducted by January 31, 2024, per this notice. We thank you for putting
your trust in Access Bank and we appreciate your understanding.
