The following are the E Levy Ghana Charges as well as the E Levy Charges on Mobile Money transactions in Ghana.
• Ghana’s Parliament approved the Electronic Levy, abbreviated as the E-levy, on Tuesday, March 29th, 2022.
• E Levy Charges mandate 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 platforms 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 indicated below.
What Is E Levy?
• E Levy is an acronym for Electronic Levy. E Levy is an abbreviation for Electronic Transaction Levy.
• The E Levy is a tax levied on electronic and digital transactions in Ghana.
• The Ghanaian government created 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
• A tax of 1.5 percent will be charged on mobile money transactions between mobile money accounts with a value more than GH100.
• 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 each 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 and payments made through point-of-sale (POS) devices would be impacted in the same way.
Charges Against E Levy Ghana
1. Mobile money transfers between accounts with the same electronic money issuer will be subject to a 1.5 percent levy (EMI)
2. A 1.5 percent tax will be deducted from mobile money transfers from one account to another.
3. Money Transfers from bank accounts to mobile money accounts will be taxed at a rate of 1.5 percent.
4. A charge of 1.5 percent will be deducted on money transfers between mobile money and bank accounts.
5. A tax of 1.5 percent will be deducted on bank transfers made via a digital platform or application linked to an individual’s bank account to another individual.
Transfers Exempted from E-Levy Payment
1. No E Levy Charges would be applied to cumulative transfers of GH100 per day made by the same individual.
2. No E Levy Charges will apply to transactions between accounts owned by the same individual.
3. There will be no E Levy Charges on transactions made through the Ghana.gov platform for the payment of taxes, fees, and charges.
4. There will be no E Levy on electronic check clearing.
5. There would be no E Levy on merchant payments to GRA-registered business firms for income tax and VAT purposes.
6. No E Levy will be applied to transfers between the principal, master agent, and agent’s accounts.