E- Levy Communications – FAQs (Update on Reduction to 1%)
- What is the E-Levy?
The E-levy is a tax imposed on electronic transfers charged at the time of transfer.
2.Who administers E-Levy?
The levy shall be administered by the Ghana Revenue Authority (GRA).
3.Who will be collecting the E-Levy?
E-levy will be collected through licensed Banks, Specialized Deposit-Taking Institutions, Payment Service Providers (PSPs), and Electronic Money Issuers (EMls).
4.What is the new rate of the E-Levy?
The E-levy has been reduced from 1.50% to 1% of the value of the electronic transfers. This was given effect to by the passage of the Electronic Transfer Levy (amendment) Act, 2022. Act 1089.
This is in addition to applicable charges. In the case of Person-to-person (P2P) transfer above GHS100, MTN charges will still be at a discounted rate of 0.75% for transfers between wallets on both the MTN Mobile Money Platform (On-net) and through the interoperability (Off-net)
NB: P2P transfers of up to GHS100 daily on MTN Mobile Money Platform (On-net) are free of charge. A cap of GHS7.5 applies to all transfers above GHS1000 that is initiated on the MTN Mobile Money Platform.
5.When will the new E-Levy reduction come into effect?
11th January, 2023
6.How does the calculation of transaction fees for P2P Transactions between GHS1.00 and GHS50.00 after the cumulative GHS100.00 work?
Transaction performed after the first 100 gives a flat fee of GHS0.38 (previously GHS0.50)
|GHS 1 – GHS 50||GHS0.38|
|GHS 50 – GHS 1,000||0.75% of the specific value of the transaction|
|Above GHS 1,000||GHS 7.5|
7. How does the calculation of transaction fees for Interoperability Transactions between GHS1.00 and GHS50.00 after the cumulative GHS100.00 works
Below is the breakdown of fees and E-levy for Interoperability transactions.
|GHS 1- GHS 50||GHS 0.38|
|GHS 50 – GHS 100||0.75% of the specific transaction value|
|GHS 100 – 1,000||0.75% of the specific transaction value||1% of the transaction value after the daily cumulative GHS100 nontaxable threshold|
|Above GHS 1,000||GHS7.5||1% of the transaction value after the daily cumulative GHS100 nontaxable threshold|
8.How will the E-Levy be applied?
The levy will be applied on the value (amount) of transfer above the daily threshold of GHS 100. This means, after a person makes transfers cumulatively up to GHS 100 for the day of the transaction, the e-levy will be applied on any additional transfers done on that day. In other words, if the total amount sent in a day is not more than GHS 100, you will not pay E-levy.
For example, if Kofi transfers GHS 50 to his sister in the morning and transfers another GHS 50 (GHS 100 in total) to his brother in the afternoon, he will not pay the E-levy.
However, if Kofi makes any other transfer in the day after the money sent to his brother, the transfer amount will attract the E-levy (i.e. 1% of any amount above the first GHS 100).
9.Who is responsible for charging the E-Levy and how will it be charged?
The levy will be charged whenever a person makes a transfer. MTN Mobile Money as a charging entity will add the levy to the transfer amount and charge both to the customer’s wallet or account. MTN Mobile Money will then pay the levy collected from the subscriber to Government.
Apart from MobileMoney Limited, other entities within the following categories will be charging the e-levy:
• Electronic Money Issuers (mobile money operators including MTN Mobile Money)
• Payment Service Providers
• All banks
• Specialized Deposit taking institutions such as rural and community banks, savings and loan companies, finance houses etc.
• The Minister also has the power to add to the list through Regulations
10.Where will the E-Levy collected go to?
Government, through the Ghana Revenue Authority will set up a platform to collect the E-Levy in collaboration with licensed Electronic Money Issuers (EM ls), licensed Payment Service Providers (PSPs), licensed Banks, specialized deposit-taking institutions, and any other entity designated by the Minister.
11.What transactions fall under the E-Levy?
Any transfer to or from a mobile money wallet or from a bank account of a person will be subject to the tax. These include:
- Transfers done on the same mobile money network – For example sending money from your MTN Momo wallet to another person’s MTN Momo wallet.
- 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.
- Transfers from bank accounts to mobile money wallets: For example, Kofi transfers money from his CBG bank account to Ama’s MTN MoMo wallet.
- Transfers from mobile money accounts to bank accounts: For example, Esi transfers money from her MoMo wallet to Yaw’s bank account.
- Bulk Disbursement
- Bank transfers on an instant payment platform or application which originate from a bank account belonging to an individual: For example, Kwame transferring money from his Bank account to Akua’s Bank account.
12.What transactions are NOT covered by the E-levy?
The following transfers are excluded from the levy:
• Cumulative transfers of GHS 100 per day made by the same person: Everyone has a daily tax-free threshold (Limit) of GHS 100 – that is every person will be able to transfer up to GHS100 a day without the payment of the levy;
• Transfers between accounts or mobile money wallets owned by the same person: if you are transferring money to your own account (i.e., of the same person) then you will not be charged the ELevy. A transfer from Kojo’s Tigo wallet to his MTN MoMo 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 attract the levy.
• Transfers for the payment of taxes, fees, and charges: Any payment of taxes, fees or charges made to a Government Ministry, Department or Agency (MDA) or Metropolitan Municipal and District Assembly (MMDA) using the Ghana.gov platform or other designated method, do not attract the levy.
• Electronic Clearing of Cheques: Clearing of cheques by the banks and specialized deposit taking institutions such as the savings and loans companies etc. are excluded.
• Specified merchant payments: Payments made to commercial establishments through a payment service (mobile money, bank application, Fintech etc.) to a person registered with the Ghana Revenue Authority for the purposes of income tax or value-added tax is excluded. This applies to both on line and physical sales.
- Transfers between principal, agent, and master -agent accounts: To avoid charging the levy multiple times on transfers that pass-through multiple service providers before they get to the actual recipient do not attract the levy.
13. If I do a transfer that the E-levy applies to, but then afterward I cancel the whole transfer, can I reclaim the tax that was deducted?
Yes. Where a customer cancels a transfer from their MoMo wallet, the
whole transaction will be reversed by MTN Mobile Money and the E-Levy deducted as part of the transfer will also be reversed and returned to the customer after they submit a proof of identity and the transaction ID.
Reversals will be done as per the Mobile Money Reversal Procedure.
14.Are utility and airtime payments subject to the E-Levy?
No. Such payments are classified under payments to a specified merchant. This means if the utility or airtime provider is registered with the Ghana Revenue Authority for income tax or VAT and the payment was made using a payment service, the E-Levy does not apply.
15.If I transfer money to my own wallet on same network, or another network or to my own bank account and I am charged mistakenly, will the tax that I paid be given back to me?
Yes. A customer can request for a refund in the event of a wrongful E-Levy charge (for instance transferring between one’s own bank account(s) or MoMo wallet(s)
For the refund to be completed, a customer must provide proof of identity (such as the Ghana card) and the transaction ID.
In situations where customers fraudulently make a refund request, the GRA shall prosecute any person after the authority audits to verify the authenticity of the customer’s refund request.
16.Will the levy be charged on payments of wages and salaries using mobile money?
Yes, salary payment is made from a mobile money wallet and will therefore attract e-levy charge on the amount subject to the daily exemption of GHS100.
17Will there be a threshold above which E-Levy charges will not apply?
No, there is no threshold; the E-levy applies to all transfer amounts subject to the daily limit exemption of GHS100.
18.Will Mobile Money loans attract E-Levy?
Loan disbursement and repayments will not attract the Levy if the institution disbursing the loan is registered with the GRA for Income tax or VAT.
19.Where do I report complaint or make enquiries?
Call 100 (MTN Call Centre), visit any MTN Branch Office or any of the MTN Social Media and digital channel.
20.Will Point-Of-Sale (POS) transactions attract the E-Levy?
No, if the POS transaction is a payment to a commercial establishment registered with the GRA for income tax or VAT purposes, the Levy will not apply. This is captured under the specified merchant transaction exemptions.
21. Will Cash-In and Cash-out for Mobile Money attract the E-Levy?
No, both Cash-in and Cash-out are not subject to the E-Levy.
22. If a private school is paying its teachers and casual workers via mobile money, will the E-levy apply?
Transfers from the school’s mobile money merchant wallet or corporate bank account to teachers and casual workers via mobile money will attract the Levy.
23. Will mobile money wallet balances attract the E-Levy?
No, mobile money wallet balances will not attract the Levy. The Levy applies only when there is an applicable electronic transfer from your mobile money wallet.
24. Will mobile money merchant (agent) account transfers attract the E-Levy?
No. Transfers among principals, master-agents and agents will not attract the E-Levy.
25. If I need help, Ghana Revenue specific or related, who do I contact?
A dedicated call centre has been set up to help individuals who may need further clarification or who might be experiencing any challenges. You can contact GRA on:
Toll Free: 0800-900-110
The FAQs are designed to help customers understand the application of the E-Levy. They reflect the information available at the time of issuing them and may be updated from time to time.