CardUp has extended its promotional 1.75% fee on income tax payments, open to any customer who pays with a Singapore-issued Visa or Mastercard.
Payments must be scheduled by 26 December 2021, and the due date can be up to 7 January 2022.
Terms & Conditions |
Do note that CardUp will no longer process income tax payments from the last four business days of each month until after the 6th of the following month, in order to facilitate reconciliation with IRAS.
How do CardUp payments interact with GIRO deductions?
In my experience, making a manual income tax payment via CardUp reduces the GIRO deduction in subsequent months.
For example, let’s say my income tax bill is S$12,000 and I opt for a GIRO installment plan. This breaks up my tax liability into 12 monthly payments of S$1,000 each. I then decide to pay off S$3,000 through CardUp.
My payment schedule would look like this:
Amount Due | CardUp | Net GIRO | |
May 2021 | S$1,000 | S$3,000 | – |
Jun 2021 | S$1,000 | – | – |
Jul 2021 | S$1,000 | – | – |
Aug 2021 | S$1,000 | – | S$1,000 |
Sep 2021 | S$1,000 | – | S$1,000 |
Oct 2021 | S$1,000 | – | S$1,000 |
Nov 2021 | S$1,000 | – | S$1,000 |
Dec 2021 | S$1,000 | – | S$1,000 |
Jan 2022 | S$1,000 | – | S$1,000 |
Feb 2022 | S$1,000 | – | S$1,000 |
Mar 2022 | S$1,000 | – | S$1,000 |
Apr 2022 | S$1,000 | – | S$1,000 |
S$12,000 | S$3,000 | S$9,000 |
Notice how there’s no GIRO deduction in May, June or July. That’s because my S$3,000 payment through CardUp puts me “ahead of my obligations” during that period.
- As of June 2021, I owe IRAS S$2,000 of my total tax bill, but I’ve already paid off S$3,000 so there’s nothing to deduct
- As of July 2021, I owe IRAS S$3,000 of my total tax bill, but I’ve already paid off S$3,000 so there’s nothing to deduct
- As of August 2021, I owe IRAS S$4,000 of my total tax bill. I’ve already paid S$3,000, so S$1,000 is deducted through GIRO
So the rule is that GIRO is only triggered to cover the difference when the amount paid to date is less than the overall amount due.
I’ve read a few comments from people with different experiences, but it could be because their CardUp payment came too close to the GIRO deduction window (6th of each month). With CardUp now blocking off the last four business days of each month all the way to the 6th of the following month, we shouldn’t have situations like this anymore.
CardUp income tax payment promotion
Terms & Conditions |
As a reminder, all CardUp customers will be able to enjoy a special rate of 1.75% on income tax payments with the promo code MLTAX2021. This code is valid with all Singapore-issued Mastercard and Visa cards.
๐ก Further Discount for Large Payments |
If your tax bill is at least S$30,000, you can write to CardUp and get a special promo code for a 1.7% fee instead. Payment must be made with a Visa card |
There is no minimum or maximum payment to use this code, but it can only be redeemed a maximum of once per user. Payments must be scheduled by 26 December 2021, with a due date by 7 January 2022.
CardUp users can pay any amount, up to and including the total tax due amount on their NOA. Monthly payment options are also available for income tax, but the 1.75% admin fee will only apply to the first payment of a recurring tax payment series.
What’s the cost per mile?
With the discounted admin fee, here’s how much buying miles will cost with the following Visa and Mastercard credit cards:
Card | Miles per S$1 | Cost Per Mile (1.75% fee) |
1.6 | 1.07 |
|
1.6 | 1.07 |
|
(Premier, PPC, BOS) |
1.6 | 1.07 |
1.6 | 1.07 | |
1.4^ | 1.23 | |
1.4 | 1.23 |
|
1.4 | 1.23 |
|
1.3 | 1.32 | |
1.3* |
1.32 |
|
1.2 | 1.43 | |
1.2 | 1.43 | |
1.2 | 1.43 |
|
1.2* | 1.43 |
|
1.2 | 1.43 |
|
1.0 | 1.72 | |
^With minimum S$2K spend per statement month, otherwise 1.0 mpd *CardUp is running a separate 1.7% promo for OCBC cardholders, which you can read about here |
Most options here yield a cost of 1.5 cents per mile or less, which is a very good price to purchase miles.
However, Citibank cardholders would be better off paying through Citi PayAll, which is offering an excellent 2.5 mpd promotion until 31 August 2021. With an admin fee of 2%, your cost per mile works out to just 0.8 cents each.
For the full range of options to earn miles when paying taxes, be sure to check out my guide below.
2021 Edition: How to pay IRAS income tax with your credit card (and earn miles)
Conclusion
CardUp users now have slightly more time to make their income tax payments, although it’s hard to argue with the awesome promotion that Citibank is now running.
If you already have a CardUp income tax payment scheduled during the last four business days to the 6th of the following month, customer service will be reaching out to you to facilitate a rescheduling.
This sounds silly. Surely a pop up to say that any payment after a specified date may not meet the cut off for iras for the following month’s giro deduction is sufficient rather than blocking all payments and making it unnecessarily inconvenient for those who know what they’re doing.
Any chance of your ‘MLTAX2021’ 1.75% promo code being extended beyond 24 August 2021 / 7 September 2021? I notice the generic 1.75% income tax payment promo code ‘CUTAX2021’ has been extended to 26 December 2021.
Yes the Milelion code has been extended too till end 2021. I will update the articles and drop a reminder