FDA Will Be Discontinuing The Use of E-Dirham

(WAM) The Federal Tax Authority (FTA) has announced it will be discontinuing the use of the e-Dirham system in paying taxes as of next Sunday, 30th October 2022, replacing it with Magnati, the smart payment option from First Abu Dhabi Bank (FAB).

Magnati provides advanced software solutions for online payments, using next-generation advanced technologies to provide a seamless and efficient payment service for FTA customers.

The FTA explained that the Magnati smart payments feature allows registrants to pay their tax obligations via FAB’s Magnati platform, in addition to enabling taxpayers to settle any payment due to the FTA using credit cards.

The Authority indicated that this step is in line with the Ministry of Finance’s decision to discontinue the use of the e-Dirham system for government payments, and transfer the payment of fees to government entities for their services using the various other authorised payment options in the UAE. 

The Authority explained that the electronic tax payment platform available through the e-Services portal on the FTA website provides various other payment options for its customers, while maintaining the highest levels of security, ease of use, and speed.

The Federal Tax Authority will start accepting FAB MAGNATI as a new payment method for paying tax liabilities instead of eDirham, which will no longer be a payment option starting from October 30th, 2022.#FTA #UAE_TAX #UAE pic.twitter.com/olkMsYMkwA

— Federal Tax Authority - الهيئة الاتحادية للضرائب (@uaetax) October 26, 2022

One of these options, the FTA noted, is payment using the Generated International Bank Account Number (GIBAN), which is issued by the FTA to each tax registrant and allows taxpayers to send direct transfers from their bank accounts to the Authority. The system is used to transfer funds from various financial institutions in the UAE and abroad, and can be used to pay Value Added Tax (VAT), Excise Tax, and any other tax obligations.