Banks to deduct EMTL on foreign currency transactions of 2021-2023 by January 31

Nigerian banks will deduct the backlog of Electronic Money Transfer Levy (EMTL) on old foreign currency transactions carried out by Nigerians on January 31, 2024.

The deductions will cover transactions between 2021 and 2023 according to the message sent by the banks to their customers on Tuesday. The banks noted that this is in line with the directive from the Federal Inland Revenue Service (FIRS).

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 is in line with the Finance Act 2020 and Stamp Act 2004, which impose an EMTL on the transfer of money deposited in any financial institution on any type of account.

Before the latest directive, the N50 charge on transactions from above N10,000 was only applicable to local currency transactions.

In a notice to the customers sent on Tuesday, one of the banks 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).

“In compliance with this notice, outstanding Electronic Money Transfer Levy 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.”