Access Bank, Zenith, Others to Debit Customers for Stamp Duty on Foreign Transaction from Jan 31st
- Nigerian banks are set to begin debiting accounts with foreign transactions in the last 36 months from January 31, 2024
- This would cover for stamp duty on old foreign transactions between January 2021 to December 2023
- From January 2, 2024, it said electronic money transfer levy would now apply to foreign currency inflows of N10,000
Legit.ng journalist Zainab Iwayemi has over 3-year-experience covering the Economy, Technology, and Capital Market.
From January 31, 2024, Nigerian banks will start charging customers stamp duty on old foreign transactions between January 2021 to December 2023.
This complies with an order from the Internal Revenue Service (IRS), according to Access Bank in a recent letter to its clients.
Source: UGC
Electronic money transfer levy to extend to foreign inflows
The bank stated that the electronic money transfer levy was only usually applicable to accounts that received electronic deposits of N10,000 or more, or the equivalent.
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It added that the deduction would now be available for foreign currency inflows of N10,000 or more as of January 2024.
It stated:
“We write to inform you of the Federal Inland Revenue Service 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 inflows,” the bank said.
“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 of FCY inflows from January 2021 to December 2023 are also to be deducted by January 31, 2024.”
Based on this new rule, it noted that stamp duty will apply to foreign transactions of $11.02 (at N907.11/$) and above.
Stamp duty will be imposed on international transactions totaling $11.02 (at N907.11/$) and above in accordance with this new rule.
Punch reported that in order to increase government revenue from the expansion of electronic money transfers in Nigeria, the EMT levy was introduced in the Finance Act 2020, which altered the Stamp Duty Act.
When money is deposited electronically into any bank or financial institution for any kind of account with a balance of N10,000 or more, there is a one-time, unique fee of N50. The federal government and the state governments split this revenue according to derivation.
In a recent report, Legit.ng reported that Nigerian financial institutions, including banks and other financial institutions, remitted N156.94 billion Value Added Tax(VAT) to the federal government's account.
The amount represents a significant increase of 136.63% when compared to the N78.77 billion VAT remitted in the same period of 2022.
The figure was captured in the latest sectorial distribution of Value Added Tax report published by the National Bureau of Statistics supplied by the Federal Inland Revenue Service (FIRS).
CBN activates automatic debit orders on debtors accounts, other defaulters in commercial banks
Legit.ng earlier reported that the governor of the Central Bank of Nigeria (CBN), Olayemi Cardoso, revealed that over N10 trillion has been loaned to customers under various intervention schemes.
CBN data showed that between September and October 2022, the apex bank disbursed about N41.02 billion to several agricultural projects under the Anchor Borrowers’ Programme (ABP).
The total disbursement under the ABP scheme amounts to N1.07 trillion to about 4.6 million smallholder farmers growing 21 commodities nationwide.
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Source: Legit.ng
