CardUp offering 1.99% fee for income tax payments with Mastercard, buy miles from 1.22 cents

CardUp has launched its income tax promotions for YA2024, and customers paying with a locally-issued Mastercard can enjoy a discounted 1.99% fee for payments scheduled by 31 August 2024.

This offer is valid for one-off payments only, and you could buy miles from 1.22 to 1.95 cents per mile depending on which card you hold. It’s a competitive price, but not the lowest possible- there’s a separate 1.75% offer for payments using Visa, available with the promo code MLTAX24.  

Here’s how the two offers compare:

CardUp 1.99% offer for income tax

Code	MCTAX24
Limit	One redemption per user, no overall redemption cap
Admin Fee	1.99%
Min. Spend	None
Cap	None
Schedule By	31 August 2024
Due Date By	11 September 2024
Validity	Mastercard
MCTAX24 T&Cs

CardUp users paying income tax can use the promo code MCTAX24 to enjoy a 1.99% fee, for payments scheduled by 31 August 2024 with due dates on or before 11 September 2024. 

This code is valid for all locally-issued Mastercards. It can be redeemed once per customer, and only for one-off payments. If you want to take advantage of the interest-free instalments offered by IRAS, you’ll need to pay with a Visa using the MLTAX24 code, which is valid for both one-off and recurring payments. 

Both new and existing CardUp users can use this promo code, but if you’re a new user, refer to the box below for a special offer.

What’s the cost per mile?

Here’s the cost per mile for various Mastercards in Singapore, given the earn rates and a 1.99% admin fee. 

Card	Earn Rate	Cost Per Mile (1.99% fee)
Citi ULTIMA MC	1.6 mpd	1.22¢
UOB PRVI Miles MC	1.4  mpd	1.39¢
OCBC 90°N MC	1.3 mpd	1.50¢
Citi Prestige	1.3 mpd	1.50¢
Citi Premier Miles	1.2 mpd	1.63¢
KrisFlyer UOB	1.2 mpd	1.63¢
BOC Elite Miles	1 mpd	1.95¢

Remember, both the tax payment amount and the CardUp fee are eligible to earn miles.

For example, someone who pays a S$1,000 tax bill via CardUp would pay S$1019.99 after fees. If he uses a 1.4 mpd card, he will earn 1,428 miles (ignoring rounding), for which he has paid a fee of S$19.99. The cost per mile is therefore 1.39 cents each.

Depending on what card you use, the cost per mile can start from as low as 1.22 cents each. This isn’t the absolute lowest price you can manage— for that, you’d need to pay with a 1.6 mpd Visa card and a 1.75% fee — but it’s still quite compelling. Assuming your tax bill is large enough, you could be buying a Business Class ticket to Japan or South Korea for just over S$1,269 plus taxes (Business Saver @ 104,000 miles @ 1.22 cents each). 

Income tax guide 2024

I’m putting the final touches on The MileLion’s Income Tax Guide 2024, which gives a rundown of options for earning miles when paying income tax with credit cards.

It should go live this weekend, so stay tuned!

Conclusion

CardUp is now offering a 1.99% fee with the code MCTAX24 for income tax payments made with Mastercard, for payments set up by 31 August 2024. However, the code is only valid for one-off payments, and you can get an even lower 1.75% fee with Visa.

Therefore, most miles chasers should prioritise the Visa code, unless they’re trying to meet the minimum spend for a welcome offer with a Mastercard.