Deposit Money Banks (DMBs) are actively notifying their customers about the recent directive from the Federal Inland Revenue Service (FIRS) instructing them to deduct the backlog of the Electronic Money Transfer Levy (EMTL) on previous foreign currency transactions conducted between 2021 and 2023 by January 31, 2024.
The FIRS directive, issued last month, is part of the ongoing implementation of the Finance Act 2020 and the Stamp Act 2004. It mandates banks to deduct and remit the EMTL on foreign currency (FCY) transactions, aligning with the regulations that impose a levy on the transfer of money to any financial institution, regardless of the type of account.
The EMTL regulations specify a one-time levy of ₦50 on the recipient of electronic receipts or transfers of ₦10,000 or more. For equivalent transactions in other currencies, the levy will be calculated based on the exchange rates determined by the Central Bank of Nigeria (CBN). Receiving banks are required to collect and remit the levy to the FIRS on the next working day after the transaction date or as prescribed by the FIRS.
Access Bank, in a notice to its customers titled ‘Important Notice,’ conveyed the FIRS directive and stated, “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).”
The notice further informed customers that outstanding EMTL on FCY inflows from January 2021 to December 2023 should be deducted by January 31, 2024. Access Bank expressed appreciation for the understanding and trust of its customers in complying with the FIRS directive.
This move by Deposit Money Banks reflects their commitment to regulatory compliance and adherence to tax regulations, ensuring the implementation of the EMTL on foreign currency transactions as mandated by the FIRS.
