After the revised Tax Act is put into effect, banks will start charging N50 stamp tax on electronic payments of N10,000 and above on January 1, 2026. Stamp duty, also known as the electronic money transfer levy (EMTL), is a one-time N50 fee applied on electronic receipts or transfers of funds put in any commercial money bank or financial institution on any kind of account for amounts of N10,000 and above. The N50 electronic money transfer levy (EMTL) on transfers will henceforth be referred to as stamp tax across all financial institutions, according to a Tuesday email from United Bank for Africa (UBA) to its clients.
“Please note the following: Stamp Duty applies to transactions of ₦10,000 and above (or the equivalent in other currencies),” the email reads. “Salary payments and Intra-bank self-transfers are exempt from stamp duty. “The Sender now bears the Stamp Duty charge. Previously, this charge was deducted from the Beneficiary/ Receiver.”
The bank stated that it is still dedicated to openness and informing clients of any changes that can have an impact on their financial activities.
Nigerian financial technology companies (fintechs) announced plans on September 7, 2024, to impose a N50 stamp duty charge on transactions of N10,000 or more.
The fintechs claim that the action complies with Federal Inland Revenue Service (FIRS) standards, pointing out that electronic transfers into personal and commercial accounts will be subject to the fee.
