Following the implementation of the Tax Act, banks will start charging senders a N50 stamp duty on electronic transfers of N10,000 and above from January 1, 2026.

The stamp duty or electronic money transfer levy (EMTL) is a single, one-off charge of N50 on electronic receipt or transfer of money deposited in any commercial money bank or financial institution on any type of account on sums of N10,000 and above.

In an email sent to customers on Tuesday, the United Bank for Africa, UBA, said the N50 electronic money transfer levy (EMTL) on transfers will now be referred to as stamp duty across all financial institutions.

“Please note the following: Stamp Duty applies to transactions of N10,000 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 said it remains committed to transparency and to keeping customers informed about changes that may affect their banking transactions.

On September 7, 2024, Nigerian financial technology firms (fintechs) announced plans to introduce a N50 stamp duty fee on transactions of N10,000 and above.

According to the fintechs, the move complies with Federal Inland Revenue Service, FIRS, regulations, noting that the fee will be applied to electronic transfers into personal and business accounts. (Vanguard)

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