ABU DHABI, 23rd June, 2020 (WAM) — The Federal Tax Authority, FTA, has reported an increase in tax payments made using the Generated International Bank Account Number, GIBAN, via the UAE Fund Transfer System, UAEFTS, which allows users to pay taxes through branches of 77 banks, exchange offices, and financial firms in the UAE.
In a press statement issued today, the Authority called on businesses registered in the tax system to use their GIBAN on UAEFTS to take advantage of its many benefits, such as transferring funds online from their bank accounts to the FTA. This eliminates the need for cash and helps prevent the spread of the novel Coronavirus, COVID-19.
GIBAN is a special International Bank Account Number, IBAN, that is issued by the FTA for each tax registrant and used for transferring funds from various financial institutions in the UAE and abroad, the Federal Tax Authority explained. This method can be used to pay Value Added Tax, VAT, Excise Tax, and any administrative penalties due.
The FTA went on to note that GIBAN can also be used to transfer funds from abroad to settle due taxes, provided that the business in question is registered with the FTA but deals with an overseas bank that is a member of the Society for Worldwide Interbank Financial Telecommunications, SWIFT.
The Authority urged users to be attentive and accurate when making an online transfer, and make sure they enter the correct GIBAN to avoid any mistakes or delays.
The e-payment transactions made via UAEFTS using GIBAN have seen a significant rise in both number and value since the system went into effect in February 2018.
FTA Director General Khalid Ali Al Bustani said that the sustained success of the tax payment system via UAEFTS using GIBAN is a result of the strong strategic partnerships between the FTA and all relevant authorities in the UAE – particularly, the Central Bank – which also ensured the smooth implementation of the tax system as a whole.
“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,” H.E. asserted.
“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,” Al Bustani added, reaffirming the FTA’s commitment to developing its services and ensuring customer happiness.
The FTA Director General went on to explain that the tax payment mechanism using GIBAN is available for all businesses registered with the Authority. Customers of most commercial banks operating in the UAE – who are members of the UAEFTS – can pay their due taxes online by transferring the funds from their bank accounts.