4 Benefits of Switching to the New Payment Method to Pay Taxes in the UAE!

 New Payment Options to Pay Taxes in the UAE

The Federal Tax Authority (FTA) in the UAE has announced in a press release about the new payment method for VAT Registered businesses in the UAE. Business Registered for VAT in UAE will now be able to gain advantage from a new reorganized method to Pay Taxes via UAE Fund Transfer System (UAEFTS) by using their Generated International Bank Account Number (GIBAN). The initiative certainly defines The Federal Tax Authority’s commitment to develop and keep evolving their services guaranteeing the tax-payers contentment in the region with their seamless services. The Director-General of the Federal Tax Authority (FTA),  His Excellency Khalid Ali Al Bustani said that the continuity of the successful tax payment system in the UAE via UAE Fund Transfer System (UAEFTS) using Generated International Bank Account Number (GIBAN) is the outcome of robust and well-planned business partnerships between the Federal Tax Authority (FTA),  and all other relevant authorities in the UAE – particularly, the Central Bank of UAE.

What can Taxpayers in the UAE expect from the NEW Payment method?

  • The new tax payment method shall offer quick and easy procedures
  • Taxpayers will be able to pay their taxes not only from the UAE but from outside the UAE as well
  • With the implementation of the new tax payment method, taxes can be settled directly by bank e-transfer for registered businesses & taxable persons under VAT in UAE
  • The introduction of a new tax payment method is bound to reduce dependence on cash in financial transactions and shall comply with all the precautionary measures to prevent the spread of COVID-19

4 Benefits of Switching to the new Payment Method To Pay Taxes in the UAE

  1. Transfer your payment online from your bank account
  2. Cashless Payment
  3. Easy process to Save time
  4. Most importantly it helps prevent the spread of COVID 19

Tax payments that are made via UAE Fund Transfer System (UAEFTS) by using their Generated International Bank Account Number (GIBAN) have recorded a substantial increase by their users are per the statements from the Federal Tax Authority (FTA) in the UAE. This tax payment system in the UAE permits the Tax registrants to make their payments from 77 branches of the banks, exchange offices and financial firms widespread across the UAE. The Federal Tax Authority (FTA) has urged VAT registered business in the UAE to take advantage of this new tax payment method to Pay Taxes via UAE Fund Transfer System (UAEFTS) by using their Generated International Bank Account Number (GIBAN) as there are many benefits derived from his tax payment system.

All About GIBAN from the Federal Tax Authority

  1. What is GIBAN?

Generated International Bank Account Number (GIBAN) is a special International Bank Account Number that is issued by the Federal Tax Authority to each tax registrant in the UAE.

  1. How is GIBAN used?

GIBAN is used to transfer funds from various financial institutions in the UAE and abroad. With GIBAN a tax registrant in the UAE can pay their Value Added Tax (VAT), Excise Tax, and any administrative penalties that are due to the Federal Tax Authority. GIBAN can also be used to transfer funds from overseas to settle their taxes that are due, provided that the business in question is registered with the Federal Tax Authority but deals with an overseas bank that is a member of the Society for Worldwide Interbank Financial Telecommunications (SWIFT). While making tax payments with GIBAN, the taxpayers has to be extra cautious and be very precise while making any online payments and should ensure that the GIBAN that they are entering while making the payment is correct in order to prevent any unforeseen circumstances. The words of the Director-General of the Federal Tax Authority (FTA), His Excellency Khalid Ali Al Bustani he mentioned “These systems reflect the Authority’s commitment to providing support to Taxable Persons. They align with the UAE’s strategy to reduce dependence on cash in financial transactions and to make use of the country’s advanced digital and technological infrastructure – a fundamental requirement for ensuring continuous development across the financial and economic sectors in the UAE,” Reiterating the Federal Tax Authority’s (FTA) commitment to develop and keep evolving their services guaranteeing the tax-payers contentment in the region with their seamless services “The FTA is dedicated to supporting the Smart Government initiative; this makes it essential for us to prioritise the e-payments sector, especially since the UAE has developed advanced payment services that meet the highest standards,” Emirates Chartered Accountants Group is a Registered Tax Agent with the Federal Tax Authority (FTA) as Emirates International Chartered Accountants Group providing exclusive Tax Agency Service to businesses in the UAE. Our Tax Professionals are highly qualified and well versed with the UAE Tax Law with the practical implementation of VAT in UAE and Bahrain. We understand that every business is different from the other. Hence, each of our services is tailored as per your business needs.

Looking for TAX Services in the UAE? We provide:

For Tax Services in Dubai: Mr. Pradeep Sai sai@emiratesca.com +971 – 556530001 For Tax Services in Abu Dhabi: Mr. Navaneeth nav@emiratesca.com +971 – 558892750 For Tax Services in Northern Emirate (Sharjah, Ajman, RAK, Fujairah) Mr. Praveen praveen@emiratesca.com +971 – 508873115

 

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