Federal Inland Revenue Service (FIRS) has directed deposit money banks to deduct and remit Electronic Money Transfer Levy (EMTL) on foreign currency (FCY) transactions going forward.
The levy is in line with the Finance Act 2020 and Stamp Act 2004, which impose an EMTL on transfer for money deposited in any financial institution on any type of account.
In compliance with service’s directive, financial institutions have already informed their customers of the latest development.
The “Notice of Remittance of EMTL on FCY Transactions” which was sent to customers by one of the major banks, intimated them of the deduction of the sum of N50 only on every foreign currency transaction with equivalent amount of N10,000 and above going forward.
It added that the sums deducted would be remitted to the relevant tax authority.
The bank further clarified that it would deduct EMTL on qualifying transactions executed from the first week of January 2021 to the last week of December 2023 will be effected.
The EMTL levy provide additional sources of revenue for the federal government and had been deducted in other economic activities including energy.
