We all know that taxes help fund important government expenditure that we all benefit from. This benefits majority of people in Singapore, who stand to receive more in public grants, transfers and subsidies than the taxes they pay.
But, the yearly ritual of paying our personal income tax bill is not unlike undergoing a medical check-up. You understand that it is good for you, but it’s still unpleasant. Since personal income tax is an expense we need to pay anyway, we figured why not earn some credit card rewards while we contribute to nation-building?
Here’s where CardUp comes in.
Pay With CardUp To Earn Miles and Cashback On Your Credit Cards For Expenses That Were Previously Not Accepted On Credit Cards
Now, you can still earn miles, cashback and points on your credit cards for payments where credit cards are not accepted. Use the Promo Code DNSFREE to enjoy $30 off CardUp fees on your first payment. Sign-up for your free CardUp account today. Terms and conditions apply.
How To Use Credit Cards To Pay Your Personal Income Tax Bill To IRAS
According to IRAS, the only accepted methods for paying your income tax bill is via GIRO, PayNow QR, AXS, SAM, internet banking, an ATM, or NETS at any SingPost branch.
However, the folks at CardUp have devised a totally legal way to allow you to pay for your income tax using your credit card, for a small fee.
For income tax payments scheduled between now till 31 December 2023, new users (or users who have not made a payment before) can enjoy $30 off the standard 2.6% CardUp fees if you redeem the DNSFREE promo code on CardUp. This means that you can make your first income tax payment of over $1150 for free. This offer is not valid for American Express and overseas-issued credit cards. The due date of tax payments must be 3 January 2024 at the latest.
Existing users, while you don’t get to enjoy the DNSFREE promo code, you can look for recurring promotions on the CardUp website. Currently, there is a promotional fee of 1.99% on your income tax payments scheduled between now till 31 August 2023 when you use the code MCTAX23. Again, this applies to all Singapore-issued MasterCard. The due date of tax payments must be 8 September 2023 at the latest. The promotional rate for Visa and China UnionPay cards has expired.
Finally, users who want to use their American Express cards to pay for their income tax bill can sign up to enjoy a fee of 2.6% and more information will be disclosed upon sign up.
Aside from income tax, you can also use CardUp for recurring bills like rental payments, stamp duty payments, insurance premiums, renovation and car loans, or foreign domestic worker salaries, just to name a few.
Read Also: The Pros And Cons Of Using CardUp For Your Recurring Bills
#1 Fulfil Qualifying Credit Card Spend Requirement For High-Interest Savings Accounts
Many high interest savings accounts today require a minimum qualifying spend to unlock higher interest payments. By using CardUp, you can now pay for your income tax, and other payment types that were previously not paid with credit cards, so that it counts towards the qualifying spend that you need.
Read Also: [2021 Edition] Best Savings Accounts for Working Adults in Singapore
#2 Clock Up Credit Card Spend To Qualify For Bonus Miles Or Other Rewards
On certain credit cards, you can receive bonus welcome air miles or cashback credit, if you charge a certain minimum amount within the first few months.
CardUp allows you to clock up the spending even on payments that you may not have been counting towards credit card spends.
Furthermore, with the uncertain economic situation, you might be rightly reluctant to go out of your way to make fresh expenditure on new items, while your income tax bill is something you already need to pay for.
#3 Take Advantage Of Promotional CardUp Fees
In the past, the 2.6% fee charged by CardUp was a point that required careful calculation and planning, since it only makes sense if the benefit from your credit card spend must be higher than the fee you pay.
However, besides the initial $30 off CardUp fees on your first payment you get when using the Promo Code DNSFREE, you can also look out for promotional rates that CardUp regularly runs. For example, they are also running a promotional 1.85% fees on international payments with the code GLOBE185, a 1.79% fees on rental payments with the code SAVERENT179 and more.
Read Also: Complete Guide To Filing Your Personal Income Tax In 2023
Are There Disadvantages Of Using CardUp For Your Income Tax Bill?
The obvious disadvantage of CardUp is the processing fee you’ll be paying. As mentioned earlier, the monetary value of the air miles, cashback or bonus interest you earn needs to be higher than the CardUp fee you’ll be paying.
To help you evaluate whether it is worth it for you, CardUp has a handy calculator on their website that you can use.
Another potential issue you might face is that CardUp uses variable Merchant Category Codes (MCC), which means you cannot use it to hit a specific type of spend reliably, though the CardUp team will be happy to assist you if you have any questions.
Earn Rewards On Your Personal Income Tax Payment And Other Bills Today
The combination of geopolitical and economic uncertainties will make us rethink our spending plans, and CardUp’s promotional rates for paying our income tax bill to IRAS makes it a really compelling option right now.
You can visit CardUp for more information and sign-up for a free CardUp account to begin using it to settle your recurring bills, make payments to your landlord or foreign domestic helper, and fulfil your duty as a responsible tax-paying citizen.
Pay With CardUp To Earn Miles and Cashback On Your Credit Cards For Expenses That Were Previously Not Accepted On Credit Cards
Now, you can still earn miles, cashback and points on your credit cards for payments where credit cards are not accepted. Use the Promo Code DNSFREE to enjoy $30 off CardUp fees on your first payment. Sign-up for your free CardUp account today. Terms and conditions apply.
This article was originally published on 18 May 2020 and updated with new information. This article contains affiliate links that help to keep the site sustainable.
The post Pros And Cons Of Using Your Credit Card To Pay Your Personal Income Tax Bill (Via CardUp) appeared first on DollarsAndSense.sg.
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