View all transactions that will be affected by the E-Levy
Finance Minister Ken Ofori-Atta is expected to announce the effective date of the Electronic Transfer (E-Levy) Bill which was approved by President Nana Addo Dankwa Akufo-Addo on Thursday.
Parliament approved the bill last Tuesday after the minority staged a walkout as part of their avowed protest against the bill.
The bill initially imposed a 1.75% tax on all electronic transactions and money transfers, but the rate was reduced to 1.5% before it was passed.
As part of the invoice, any transfer to or from a mobile money account or from a person’s bank account will be subject to the tax.
1. Transfers made on the same. mobile money network For example, send money from your MTN Momo wallet to another. person’s MTN Momo wallet.
2. Transfers from one mobile money network to a recipient on another network For example, sending money from your MTN Momo wallet to another person’s TIGO Cash wallet.
3. Transfers from bank accounts to mobile money accounts: For example, Kofi transfers money from his CBG bank account to Ama’s MTN mobile money wallet.
4. Transfers from mobile money accounts to bank accounts: For example, Esi transfers money from its Vodafone Cash wallet to Yaw’s GCB bank account.
5. Bank transfers on a digital platform or application that originate from a bank account belonging to an individual: For example, Kwame transferring money from his NIB Bank account. to Akua’s Prudential Bank account.
Which transactions are not covered by the E-Levy;
The following transfers are excluded from the direct debit:
1. Cumulative transfers of GHS 100 per day by the same person: Everyone has a daily tax-free threshold (limit) of GHS 100 – i.e. each person will be able to send up to 100 GHS per day without payment of the tax;
2. Transfer between accounts belonging to the same person: if you send money to your own account (ie from the same person), you will not be charged E Levy. A transfer from Kojo’s Tigo wallet to his MTN wallet or from his CBG bank account to his GCB bank account or from his savings account to his current or investment account, will not result in the charge.
3. Transfers for Payment of Taxes, Fees and Charges: Any payment of taxes, fees or charges made to an MDA or MMDA using the Ghana.gov platform or other designated method, does not incur any transfer. sample.
4. Electronic check clearing: the clearing of checks by banks and specialized depository institutions such as savings and loan companies, etc. is excluded.
5. Specified Merchant Payments: Payments made to commercial establishments through a payment service (mobile money, banking app, fintech, etc.) to a person registered with the Ghana Revenue Authority for income tax purposes. income or value added tax are excluded. This applies to online and physical sales.
6. Transfers between master, agent and master-agent accounts: To avoid charging the fee multiple times, transfers that pass through multiple service providers before arriving at the actual recipient are not subject to the fee.
Are utility and airtime payments subject to e-tax?
Yes. Once the payment has been made from a mobile money account, a bank account or via a merchant payment platform; and exceeds the daily threshold of GHS 100 to which the charge is due.
Will the levy be deducted from the payment of wages and salaries by mobile money?
If the company is registered with the GRA for income tax or VAT and salary payment is made from a company bank account, there will be no electronic debit from the amount.
Will there be a threshold above which electronic debit charges will not apply?
No, there is no threshold; electronic debit applies to all transfer amounts.