Citi has launched a fantastic new income tax payment offer for its PremierMiles cardholders with a 25% bonus on your regular earn rate for income tax payments using its PayAll service between now and the end of July 2020.
That means a 1.5 cents per mile earn rate for these transactions instead of the usual 1.2 cents per mile, reducing the cost per mile from 1.67 cents to a competitive 1.33 cents each when settling this year’s IRAS bill.
Simple enough – just make your income tax payment to IRAS between now and 31st July 2020 using your Citi PremierMiles Visa or Mastercard and you’ll automatically earn a bonus 0.3 miles per dollar over and above your regular earn rate for the transaction.
That means 1.5 cents per mile instead of the usual 1.2 cents per mile.
Citi PayAll transactions have a 2% processing fee, so this works out as a way to ‘buy’ miles for 1.33 cents each. For example:
- Tax bill: S$10,000
- Citi PayAll Fee: S$200
- Miles earned: 15,000 (10,000 x 1.5)
- Cost per mile: 1.33 cents (200/15,000)
Citi does not request a copy of your IRAS Notice of Assessment when paying taxes through PayAll, however they do reserve the right to request a copy later.
Note that the Citi PayAll function on the Citi app does not yet reflect the increased miles rate when using Citi PremierMiles cards (it still shows 12,000 miles for the above S$10,000 income tax example), so you’ll have to trust that the higher earn rate will be honoured.
Don’t overpay your taxes
A little warning from Citi here not to deliberately overpay your IRAS taxes using this service:
“An Eligible Cardmember should not overpay his taxes via Citi PayAll. Where Citi has determined in its discretion exercised reasonably that an Eligible Cardmember’s payment(s) to IRAS exceed the amount of taxes which such Eligible Cardmember is required to pay to IRAS, Citi shall be entitled to claw back any Miles credited to such Eligible Cardmember’s Eligible Card account in connection with any amount so overpaid to IRAS using Citi PayAll. In such an event, Citi will refund the relevant portion of the Citi PayAll service fee in respect of such overpaid amount.”
A full list of the terms and conditions for this offer can be found here.
Citi Miles are very flexible
Even if 1.33 cents per mile comes out a little on top of what you could achieve paying your income tax through another card (see our full breakdown), don’t forget how flexible Citi Miles are compared with some other credit card points.
You can transfer your Citi miles into 11 different frequent flyer programmes and on the hotel side into IHG points.
|Citi Miles credit to the following loyalty schemes:|
As you can see from the table above, Citi gives you a wide range of flight redemption options including oneworld and SkyTeam carriers.
That’s a great benefit to consider especially during these uncertain times due to COVID-19. Citi Miles never expire as long as you retain your card account.
For a full list of which credit card loyalty points balances transfer into which frequent flyer programmes or hotel loyalty schemes in Singapore, check out our comprehensive guide here. It also gives examples of some of the alliance and partner airline redemptions you can achieve that you might not have considered before.
As we highlighted last week in our annual review of options for paying your income tax by credit card, 2020 is turning out to be the most competitive year we’ve seen for earning thousands of miles at some very reasonable rates when paying your income tax bill, starting at just 1.07 cents per mile.
We’ve fully updated that analysis to take account of this latest deal from Citi, so do revisit the article to check out all the options for paying your income tax this year.
This new deal from Citi makes it the cheapest way to earn miles for income tax payments using these cards (ipaymy is next at 1.43 cents per mile).
Citi is also continuing to run a 26,500 miles sign-up bonus for its PremierMiles card between now and 30th June 2020, so there’s still time to get one and take advantage of this offer.
Annual fee: $192.60/yr (first year free)
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