FIRS Mandates Commercial Banks to Deduct, Remit Electronic Money Transfer Levy On Foreign Currency Transactions 

By Our Reporter

Federal Inland Revenue Service (FIRS) has mandated Commercial Banks to deduct and remit the Electronic Money Transfer Levy (EMTL) on foreign currency (FCY) transactions.

The Federal Inland Revenue Service (FIRS) has mandated Commercial Banks to deduct and remit the Electronic Money Transfer Levy (EMTL) on foreign currency (FCY) transactions.

This is in line with the implementation of the Finance Act 2020 Section 48 and Stamp Act 2004 Section 89A (1) as amended, which imposes a levy known as the Electronic Money Transfer Levy (EMTL) on recipients of any electronic receipts or transfers of ₦10,000 or above on any type of account in a deposit money bank or financial institution.

In compliance with this directive, a deduction of fifty Naira (₦50) only will be applied to every foreign currency (FCY) transaction with an equivalent amount of ₦10,000 and above. This deduction will commence immediately and will be remitted to the FIRS as mandated by regulatory authorities.

Furthermore, 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 will also be remitted accordingly.

In line with the recent directives, banks across the country have sent out electronic circulars commencing the deductions while calling on customer for their understanding and cooperation as they ensure compliance with regulatory requirements and guidelines.