Banks are poised to implement a stamp duty charge on historical foreign transactions made between January 2021 and December 2023 by January 31, 2024, following a directive from the Federal Inland Revenue Service.
Access Bank conveyed this information through a recent communication to its customers.
The bank clarified that the electronic money transfer levy previously applied solely to accounts receiving electronic deposits of N10,000 and above, but starting from January 2024, the deduction would also extend to foreign currency inflows equivalent to N10,000 and above.
According to Access Bank, this action is in compliance with a notice from the Federal Inland Revenue Service, aligned with the Finance Act 2020 and Stamp Act 2004, mandating banks to remit the Federal Government Electronic Money Transfer Levy from foreign currency inflows.
Moreover, outstanding Electronic Money Transfer Levy on foreign currency inflows from January 2021 to December 2023 is also to be deducted by January 31, 2024, in accordance with this notice.
Under this new regulation, stamp duty will be applicable to foreign transactions equivalent to $11.02 (at N907.11/$) and above.
The Electronic Money Transfer Levy, introduced in the Finance Act 2020, seeks to enhance government revenue from the expansion of electronic funds transfer in Nigeria.
This levy constitutes a one-time charge of N50 on electronic receipts or transfers of sums deposited in any deposit money bank or financial institution on any type of account, involving amounts of N10,000 or more.
The revenue generated from this levy is allocated between the Federal Government and state governments based on derivation.
