The Federal Tax Authority introduces new version of the eDirham across its official channels to pay due taxes
Transitional period extending till October 2020 end, enabling tax system registrants seamless transition to new eDirham advanced, safe services
Calling on tax registrants to accelerate the switch to using the new version of eDirham before stopping the use of the old version, beginning November 2020
Abu Dhabi, 12 October 2020: The Federal TAX Authority, FTA, has completed its preparations to join the Third Generation of the UAE’s eDirham system, , which has been launched by the Ministry of Finance, MoF, to facilitate the collection of state fees and revenues and to provide further options for paying government fees using the latest technology in accordance with the best safety and security standards.
The Authority began implementing the transition plan for the current month of October to enable all tax registrants to make a swift and easy switch to process their tax payments to the Authority through the new generation of the eDirham, approved within the official payment channels provided by the Authority. This comes to replace the old version of the eDirham, which will be suspended and will not be available to use for the Authority’s transactions as from the beginning of November 2020.
The FTA stresses the necessity for all those registered with the Authority who are eDirham users to prepare to switch to the new version of the eDirham, which will provide them with a more diverse set of options that are both easier to use and adhere to the highest standards of safety and excellence.
Excise Tax Registrants
In the interest of facilitating a smooth transition to the new version, the FTA has enabled the payment feature to be available through the old version of the eDirham cards, in addition to the new cards, until October 31st, 2020, for Excise Tax Registrants. They will now be able to do their payments to the Authority from the beginning of this current week through the new version of the eDirham. This system has now been included in the official payment channels of the Authority, with the possibility of payment through the old version during the transitional period, lasting till the end of October 2020.
The Authority calls on Excise Tax Registrants to accelerate the shift to the use of the new version of the e-Dirham system and to ensure that any outstanding balance from the old version are consumed and settled before the cards come to a complete stop at the end of the transition period set forth by the Authority.
Value Added Tax (VAT) Registrants
The FTA indicated that VAT registrants will be able to process their tax payments to the Authority from the beginning of November 2020 through the new version of the eDirham, and from the beginning of that same date, payments will no longer be available to them through the old version of the eDirham system.
The Authority called on VAT registrants to prepare to switch to the new version of the eDirham system, and to consume and settle outstanding balances from the old version of the e-Dirham before the cards come to a complete stop at the end of the transition period set by the Authority at the end of October 2020.
The Authority affirmed its keenness to provide tax registrants enough time by allocating a transitional period that extends till the end of October 2020, allowing for a smooth transition to the advanced new version of the e-Dirham system.
The FTA indicated its stance in remaining up-to-date with the latest electronic systems, and to provide a variety of payment mechanisms which are characterized by their speed and flexibility, with the aim of expanding the range of payment options to facilitate procedures for taxpayers.
H.E. Younis Haji Al Khoori, Undersecretary of the Ministry of Finance (MoF), noted that the Federal Tax Authority (FTA) joining the third generation e-Dirham system confirms UAE government entities’ keenness to facilitate and improve government services, especially with regards to collecting fees. H.E. said: “The Ministry of Finance is keen to continue working with all its strategic partners from the government and private sectors to develop the eDirham system according to best standards. It seeks to adopt the latest technology and systems that ensure safe and effective cash payments, and provide smart, easy and flexible e-payment services that enhance user satisfaction. This falls in line with the directives of our wise leadership and the UAE centennial 2071.”
His Excellency Khalid Ali Al Bustani, FTA Director-General, said: “The Authority’s accession to the e-Dirham (E11) has resulted from a successful strategic partnership between the FTA and the MoF, which has among its objectives ensuring client satisfaction by the implementation of the latest electronic systems in accordance with the best efficiency and safety standards.”
His Excellency Khalid Ali Al Bustani, FTA Director-General, said: “The Authority’s accession to the eDirham has resulted from a successful strategic partnership between the FTA and the MoF, which has among its objectives ensuring client satisfaction by the implementation of the latest electronic systems in accordance with the best efficiency and safety standards.”
H.E. Al Bustani added: “This step is in line with the UAE’s general strategy aimed at promoting cashless transactions and benefiting from the State’s digital and technological infrastructures, as they are the foundations for the continuous development of the national financial and economic sectors. These infrastructures provide an easy, safe, and smooth movement of money and financial assets, thereby enhancing confidence in financial transactions locally and with all countries of the world."
H.E. Al Bustani stressed that the FTA is committed to applying the best international standards across all of its activities and services. He explained that the new step is in line with the latest practices in advanced economies, which take into account the effective management of risks by promoting the use of e-payment methods, thereby supporting the UAE’s Smart Government initiative.
By joining the MoF’s eDirham system, Excise Tax registrants will be able to pay their tax obligations and complete their transactions easily by downloading the eDirham smart application, eDirham Instant ‘Mubasher’, on their smartphones without the need for bank cards. Registrants who have accounts with banks that are participating in providing the eDirham service only need to link their accounts to the application to complete their transactions.
The new generation of eDirham includes 3 cards with different benefits: The 'Hala Card' is a card suitable for new customers who want to make one-time payments. No registration or documents are required, and the card can be topped-up with a balance of up to AED 3,500. The 'Gold Card' is a prepaid card with multiple recharge options, suitable for regular payments and multiple transactions. This card requires registration to provide an additional level of security. The ‘Premium Card’ is a customisable prepaid card that requires registration. It is suitable for individual and corporate customers with high balances without a maximum recharge limit.