Overview
In December 2023, the Federal Inland Revenue Service (FIRS) directed deposit money banks to deduct and remit the Electronic Money Transfer Levy (EMTL) on foreign currency transactions. The Directive, issued under the Federal Inland Revenue Service (Establishment) Act 2007, took effect in January 2024.
The Directive follows the Electronic Money Transfer Levy Regulations 2022, issued by the Minister of Finance, Budget and National Planning on December 6, 2022, and approved by the National Assembly under Section 89 of the Stamp Duties Act. It signals a widening of the EMTL regime to cover foreign currency deposits, a significant shift for banks and their customers.
This insight examines the legal basis for the Directive, its implications for deposit money banks, and what businesses and individuals should know about compliance with the expanded EMTL framework.
