There's no avoiding paying income tax but here's how you can earn air miles, rewards, and even cashback from it.
You've filed your taxes now, and then what? Many of us are aware of the many different methods available to pay our annual income tax. From opting for traditional payment methods like internet banking or AXS machines to making the best of modern technology and paying via the mAXS app – there is no dearth of options.
What if there was a way that was not only convenient but also allowed you to gain additional rewards and savings? One of the most efficient ways to pay your income tax is using your existing credit card via CardUp, which lets you earn credit card rewards on this inevitable one-time payment!
CardUp is an online card payments platform, which enables any payment to be made with a credit card, regardless of whether the recipient accepts credit cards – and this includes your payments to the tax authorities. Even with a 2.6% CardUp fee charged per transaction, the rewards you earn will still outweigh this cost.
All you need is to register for a free account on CardUp and schedule a one-time tax payment – and enjoy the amazing rewards earned on your credit cards!
Maximise benefits of your credit cards
By paying your income tax with existing credit cards through CardUp, you earn rewards on every dollar you spend. This means you earn air miles, cashback 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. For example, by spending $5,100 via CardUp a month, you could be earning more than 94,000 air miles in a year. This means that at just $1,590 in fees paid, you could actually redeem a business class trip to Tokyo worth around $3,900 – or as low as 14% top-up from the price of an economy class ticket!
Furthermore, if you time your spending with certain credit cards’ sign up and minimum spend bonuses, you'll rack up even more rewards, which makes getting to your dream destination even quicker!
Income tax is an inevitable payment for all working adults, so why not choose a platform that helps you earn rewards in return?
Convenience of online payment setup
CardUp 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 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 error. To ensure you pay the right amount, your payment is also only processed when you enter the exact outstanding amount in your Notice of Assessment.
Furthermore, there is no need to inform the tax authorities separately after making the payment. Payment will automatically be reflected in your myTax portal account within 3-5 business days.
From income tax, property tax to business tax, you can use CardUp for many of your big recurring payments to the tax authorities as well. Moreover, CardUp accepts all Visa, MasterCard and American Express cards.
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, the 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 more than $100 million worth of personal and business transactions for customers in the past few years, and is trusted by customers for their big payments.
How to get started:
1. Sign up for a free account.
2. Log in, schedule a payment, and select Income Tax under the Taxes & Stamp Duty payment category
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.
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.
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.
6. Select your credit card, review and confirm your payment, and you’re all good to go!
This article was first published on CardUp.
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CardUp is a platform which enables individuals and businesses to pay their rent, taxes, insurance premiums, payroll, supplier invoices, and more using credit cards. This allows them to earn rewards, access interest-free credit, and digitise payments. CardUp was launched in 2015 in Singapore, and has managed over $100m of payments since.