The C.O.T is a guaranteed income and as such is a very important source of bank revenue since customers mostly make withdrawals on their deposit. This gives the banks a two way source of revenue as they charge interest on customer deposits lent to other people and consequently charge on amount withdrawn by the customers themselevs. It is also an approved source of revenue for banks according to CBN guidelines.
Banks can be flexible with C.O.T charges depending on the turnover of your account. If your account regularly sees withdrawals of say N100m monthly there is every likelihood the bank can reduce its C.O.T charges to as low as 0.1% or in some cases zero.
In addition to C.O.T charges, banks usually charge Value Added Tax on the amount deducted. For example for an account with a monthly turnover of N10m the C.O.T at 0.5% will be N50,000. The bank will charge additional VAT of 5% on the N50,0000 bringing the total amount paid to N55,000.
I will like to confirm if COT is to be charged also on other bank charges like mgt fees on loans, charges on Letter of credits, e.t. C. What if I have more than one account with the bank – related companies, and I transfer money from one account to another of my company account within some bank, am I to pay C0T on the transfer?
C.O.T is only charged on withdrawals from current account deposits. It is not charged when transfers are made between accounts with the same name signatories and owners within the same bank. Hope this addresses your questions? Thanks for visiting ugometrics
Mine is 1% but my bank always charge more than that.
C.O.T is robbery by the banks. How can the banks charge COT on personal funds. Because the way our society is, where people don’t like to pay for services received, banks should be made to charge monthly fees for various numbers of withdrawals in current account and no fees for 15 withdrawals a month for savings account. This will encourage more banking amongst the people
it is very usefulfor me. thanking you
What about a situation where a costumer o a bank instruct the bank to make some transfer to another person not base in the country where the bank is found. Will the widrawer pay COT?
If YES, can the bank not deduct the COT on the amount they have to send to d widrawer?
The bank will deduct COT and can also withdraw foreign transfer charges. However, the beneficiaries bank may also deduct inward transfer charges.
Enter your comment here…pls Now that The Buhari Administration have superimpose zero coT,the negative Economic effect will be High when compared with the Positive Effect…Pls what is your Take on This?
I get one problem from reserve Bank of India they will transfer Nepal Sbi Bank my account online money tansfor but for cot code I have to pay first them what is that plz can me explain it is possible?
So I got a inheritance check in mail says I can’t cash until I pay 3100 for cot so the check is useless then
can interest be charged on COT
Does bank take #25000 cot charge on first withdrawal from the cbn
thanks for this,
please i will like to know if as a tax person, can i charge Withholding tax of 5% or 10% on commission of turnover?
Is C.O.T applicable to online payments via MasterCard?
Why the commercial banks are charging C.O.T
High…What’s the COT for transferring 6000 dollars from Yemen to Kenya
So am I correct that COT isn’t a fraud?. Because they are telling me that base on the funds with drawers they say it’s the taxes I am to pay and they sent me the exact same reason, but it British government.