Picture for illustrative purposes only. SUPPLIED

The Federal Tax Authority (FTA) has stated that it would phase out the usage of the e-Dirham system for tax payments. The phase-out will officially start on Sunday (October 30) and will be replaced with Magnati, the smart payment option from First Abu Dhabi Bank (FAB). Magnati delivers modern software solutions for online payments, utilizing next-generation advanced technology to give FTA consumers a seamless and effective payment process. According to the FTA, the Magnati smart payments feature allows registrants to pay their tax obligations through FAB's Magnati platform and settle any amount owed to the FTA using credit cards. The Authority stated that this measure is consistent with the Ministry of Finance's decision to stop using the e-Dirham system for government payments and shift fees to government bodies for their services to the UAE's numerous other authorized payment options. The decision was made in response to consumer feedback and took their needs into account to give them an easy-to-use, flexible, and efficient payment experience. The Authority added that the electronic tax payment platform accessible via the FTA website's e-Services portal offers a variety of additional payment choices to its customers while preserving the greatest standards of security, the convenience of use, and speed. Payment using the Generated International Bank Account Number (GIBAN), which the FTA issues to each tax registrant and allows taxpayers to transmit direct payments from their bank accounts to the Authority, is one of these methods, according to the FTA. The system is used to transfer funds from various financial institutions in the UAE and overseas, and it can also be used to pay VAT, Excise Tax, and other tax duties. BKM/ Expat Media
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