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UAE: New payment method announced for tax liabilities

The Federal Tax Authority earlier announced that as of Sunday, October 30, the eDirham platform will no longer be accepted

Published: Sun 30 Oct 2022, 12:45 PM

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The Federal Tax Authority (FTA) announced that it will be discontinuing the use of the eDirham system in paying taxes as of today, October 30, 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 eDirham 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 decision came in response to suggestions from customers and takes their requirements into consideration in an effort to provide them with an easy to use, flexible, and efficient payment experience.

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.

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.

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