E-levy Exemptions: 6 times the GRA can’t charge you E-levy

This article is not here to defend or make sense of the E-levy because I have yet to come to terms with it.

However, I believe that since you and I can’t do anything at the moment but wait for our leaders to implement this policy properly, so we don’t feel we are being taxed from multiple sources.

Let’s consider reviewing the E-levy from the standpoint of what it doesn’t cover.

For the first time since the new tax policy was passed, I decided to read about it because it was trending on Twitter.

E-Levy; All you need to know. Kindly be informed!#fintech #Accra #korba365 #AFCON2023Q pic.twitter.com/T5cDvTvvgm

— Korba365 (@Korba365) May 26, 2022

I got hooked the moment I read the definition of what the E-levy is on the GRA website. According to GRA, the E-levy is a Levy on all electronic transfers of money apart from those excluded by law.

Hold it; I will not bore you with what is excluded by law; however, I will be looking at the exemptions provided by law on all electronic transfers of money ( because this is where the confusion is).

Even though the law states all, it is not entire ALL, so hold your peace.

As I gradually move towards listing what transactions are not covered by the E-levy, let me first blow your mind with what I discovered on E-levy exemptions.

E-levy Exemptions

According to the Law as interpreted by GRA, E-levy won’t apply to the following scenarios:

There is more to this, but since I am not a tax expert, I am only focusing on what applies to an individual and not an organisation; please note.

1. Cumulative transfer of GHS 100 per day made by the same person using mobile money

    You will be able to send up to GHS100 a day without paying the levy.

2. Transfer between accounts owned by the same person: 

If you are sending money to your own account, you will not be charged the E-Levy provided your bank or mobile money accounts are linked with your Ghana Card PIN.

The key point here is to make sure all your accounts (Bank Accounts, Mobile Wallets, Investment Accounts, etc) are linked to your Ghana Card. In case you don’t have the Ghana Card, click here.

For example, You won’t be charged E-levy if:

1. You are transferring from your MTN wallet to my Vodafone Cash wallet or
2. You are transferring from a GT bank account to a Fidelity  bank account ( all in your name linked to your Ghana Card) or
3. You are making an internal transfer from your CalBank savings account to your current or
4. You are transferring from an investment account will not attract the levy because you have linked all your accounts with your Ghana Card.

3. Transfers for the payment of taxes, fees, and charges

Any payment of taxes, fees or charges made using the Ghana.gov platform or other designated Government of Ghana payment systems will not attract the levy.

It will be funny to be taxed for wanting to pay your taxes. Our leader really got this one! LOL

4. Electronic Clearing of Cheques

Clearing of cheques by banks and Specialised Deposit-Taking Institutions such as Savings and Loans companies, etc. will not attract the levy.

5. Specified Merchant Payments

Transfers made through an electronic payment service (mobile money, bank application, FinTech platform (e.g. Korba, expressPay, Hubtel, etc.), etc.) to a commercial establishment which is registered with the Ghana Revenue Authority for the purposes of Income Tax or Value Added Tax are excluded. 

To my tech-savvy colleagues, for you not to be charged for E-levy make sure whatever electronic payment service you are using is registered with GRA. No backdoor apps to transfer money anymore!

If you are charged E-levy for using any electronic payment service in Ghana, that should inform you that your service provided is are not tax compliant, and as a good citizen, you need to report them to GRA. Click here to report.

6. Transfers among principal, agent, and master-agent accounts

To avoid charging the Levy multiple times, transfers among principal, agent, and master agent are excluded from the levy.

In simple language, the GRA won’t charge E-levy on transactions of major stakeholders like Mobile Money Agents, Fintech Companies, Financial Institutions, etc.

Does this excite you?

Now that you know the exemptions that exist for E-levy. Let’s answer some specific questions using the knowledge we have discovered above with reference to GRA’s website.

Are utility and airtime payments subject to the E-Levy?

No, once the payment is a specialised merchant payment (E.g. Fintech apps like Korba, ExpressPay, Hubtel, Slydepay, etc.) or one made through a government-designated system (ECG, GWCL, Ghana.gov, etc.), the transfer amount will not attract the levy.

Are foreign or inward remittances subject to the levy?

No, remittances are excluded from the levy.

Will Point-Of-Sale (POS) transactions attract the E-Levy?

No, as long as 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.

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.

If a private school is paying its teachers and casual workers via mobile money, will the E-Levy apply?

Transfers from the school’s corporate mobile money merchant wallet to teachers and casual workers via mobile money will attract the levy.

However, the school is allowed to claim the levy as an allowable expense in its income statement.

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 electronic transfer from your mobile money wallet.

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.

I hope you found this article helpful. Please remember to drop your comments.

source https://www.jbklutse.com/e-levy-exemptions/