While 2020 has gotten off to an extraordinary start, there are a few things that have remained constant – income taxes being one of them. In light of the current situation however, the Singapore Government has offered automatic deferment of income tax payments for self-employed individuals who may have been negatively affected by COVID-19. 

For the rest of us, we should be receiving our Notices of Assessment soon, which also means it's time to start considering the different payment options, searching for the one most convenient and rewarding way to make these payments to the tax authorities.

 

Making income tax payments with your credit card

CardUp enables you to use your credit card for a range of different payments that don't already accept card payments – income tax included. This lets you earn credit card rewards such as miles, points and cash-back on this large, one-off payment, giving you additional savings!

 

Maximising the rewards earned on your cards

By paying your personal income tax with your existing credit cards through CardUp, you earn rewards on every dollar you spend. This means you earn air miles, cash-back and points for a payment that typically does not earn you rewards when you pay via other methods.

Together with other payments that can be made on CardUp – such as your rent, insurance, education fees and more – you can easily earn thousands more miles or points each month. This also lets you earn more miles per month, letting you redeem your business class tickets many times faster compared to just putting on your regular day-to-day spend (dining, entertainment, transport etc).

Here's an example as to how you'll be able to earn 94,000 air miles in a year for these large, recurring payments that you'll have to make anyway:

 

Payment type Annual spend CardUp fee (2.25% per transaction) Earn (1.4 miles per dollar)
Income tax $5,000 $1,479.60 per year

94,135 air miles

 

(Worth $4,000 when redeemed for a return business class flight to Tokyo, Japan!)

Insurance premiums $15,000
Rent $27,960
Education fees $8,600
Helper salary $7,200
Electricity bills $2,000
Total $65,760

 

This means that at just $1,480 in fees paid, you'll be able to redeem a business class trip to Tokyo worth around $4,000. This is savings of almost 63%! – and to be just in time for when the situation hopefully gets better for your next holiday!

Not sure which cards you should be using for your income tax payments? Check out our list of the most popular and best mile credit cards and cash-back cards for your CardUp payments!

If you want to find out how much miles or cashback you can earn by shifting your income tax payments onto CardUp, try calculating it using CardUp's rewards calculator.

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Save even more with lowered fees for your 2021 income tax

We're also rolling out promotions for your income tax payments in 2020, letting you enjoy discounted fees and hence more savings! 

 

GET225 — 2.25% on all other credit cards

For all other cardholders, you can also continue to use our GET225 promo code to enjoy our lowered fees of 2.25%.

More information can be found here

 

Alternatively, sign up for a free CardUp account to get access to insights on exclusive credit card promotions that CardUp has with its partners!

 

Convenience of online payment setup

CardUp also gives you the convenience of making your payment directly to the tax authorities online, unlike other credit card options that require manual form submission with the payment going back to your bank account, which means you still need to do an additional step of actually getting the payment into your tax account.

While setting up your tax payment, CardUp automatically inputs your tax number from your linked NRIC in your registered account, thus eliminating any chances of errors. To ensure that you pay the right amount, your payment is also only processed when you enter the exact outstanding amount in your Notice of Assessment.

 

Secure payments and trusted by customers

Payment security is definitely one of CardUp’s biggest priorities. All payments are processed with bank-level security and your information is protected with 128-bit encryption and physical security in the same way that banks do. In addition, our payment gateway is PCI-DSS Compliant - CardUp does not store full card numbers and other sensitive details. Furthermore, all funds processed through CardUp are held in a safeguarded client money account and these funds, when being delivered to your recipients, are never retained for more than 3 hours.

CardUp has managed hundreds of millions worth of personal and business transactions for customers in the past few years, and is trusted by customers for their big payments.

 


Here's how to get started:

1. Sign up for a free account or log in to your existing CardUp account

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2. Schedule a payment, and select Income Tax under the Taxes & Stamp Duty payment category

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3. Fill in the payment amount as per the outstanding tax balance as shown in your Statement of Account. Do note that you can only set up a one-off tax payment to the tax authorities via CardUp each fiscal year.

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4. Select the payment due date. Tax payments can only be set up within a fixed period each month to allow the tax authorities sufficient time to process your payment.

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5. Your payment reference number is automatically pulled from the NRIC number registered on your CardUp account. This prevents any erroneous payments to the wrong tax accounts not tied to your own NRIC.

You are also required to upload an up-to-date copy of your Statement of Account, showing your Name, NRIC, Outstanding balance and Date of outstanding balance for us to verify your payment.

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6. Select your credit card, enter your promo code (if any), and you're good to go!

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7. The tax authorities will then receive your tax payment on the specified due date, with no need for you to notify them of this payment. 3-5 business days after the due date, you can log in to myTax Portal to check that the payment has been posted to your account.



 

Use CardUp this tax season and experience the benefits first hand. Sign up for your free account here or contact us to find out more!

 

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