The following are the E Levy Fees in Ghana, as well as the E Levy Fees on Mobile Money Transactions in Ghana.
Concerning E Levy Charges
Ghana’s Parliament approved the Electronic Levy, abbreviated as the E-levy, on Tuesday, March 29th, 2022.
E Levy Charges demand a 1.5 percent tax deduction on electronic transactions such as mobile money transfers, bank to bank transfers, bank to mobile money transfers, and online payment transactions using payment systems such as Visa Card, Master Card, and PayPal.
The E-Levy is applicable to the following five primary transactions, but six other transactions are excluded, as outlined below.
What Is E Levy?
E Levy is an acronym for Electronic Levy.
E Levy is a tax levied on electronic and digital transactions in Ghana.
Ghana’s government enacted the E Levy to tax all electronic transactions in the informal sector in order to increase the tax base.
The E levy will apply to five primary types of transactions: mobile money transfers, bank-to-bank transfers, bank-to-mobile money transfers, and online payment transactions using payment systems such as Visa Card, Master Card, and PayPal.
Charges For E-Levy On Mobile Money
Mobile money transactions between Mobile money accounts that exceed GH100 will be subject to a 1.5 percent levy.
This implies that 1.5 percent will be deducted from any mobile money transactions over GH100, while withdrawals from mobile money accounts would be tax-free.
The E Levy Charges will have no effect on mobile money transactions of less than GH100 done by a single individual in a single day.
However, all person-to-person mobile transactions, such as money transfers, payment for products and services, and payment of utilities, would be impacted.
Additionally, all merchant payments including payments made through point of sale (POS) devices would be impacted in the same way.
Charges for the E Levy
Mobile money transfers between accounts with the same electronic money issuer will be taxed at a rate of 1.5 percent (EMI)
1.5 percent tax will be deducted from mobile money transfers between accounts.
Money Transfers from bank accounts to mobile money accounts will be taxed at a rate of 1.5 percent.
Money Transfers from mobile money accounts to bank accounts will be taxed at a rate of 1.5 percent.
Bank transfers made via a digital platform or application linked to an individual’s bank account to another individual will be taxed at a rate of 1.5 percent.
Exemptions From Charges
On cumulative transactions of GH100 per day done by the same individual, there would be no E Levy Charges.
No E Levy Charges will apply to transactions between accounts owned by the same individual.
There will be no E Levy Levies on transactions made through the Ghana.gov platform for the payment of taxes, fees, and charges.
There will be no E Levy on electronic check clearing.
There will be no E Levy on merchant payments to GRA-registered business firms for income tax and VAT purposes.
Transfers between the principal’s, master agent’s, and agent’s accounts will be free of E Levy charges.