It’s that dreaded time of year again when the Notice of Assessment from IRAS in Singapore arrives, outlining your income tax owed from earnings in 2020, though as always there’s some light at the end of the tunnel – the option to pay by credit card and earn thousands of points and miles in the process.
Card payments company ipaymy has launched its 2021 income tax payment offer today, allowing both new and existing users to pay a competitive fee of 1.75% for these payments, the same popular rate it offered during tax season last year.
A rate of 1.75% represents a 22% discount on the usual 2.25% fee when you use your credit card to pay bills using ipaymy.
If you use ipaymy to pay your income tax bill between now and 31st July 2021, you’ll be eligible for the discounted fee using the TAX2021 promo code.
The offer is subject to the following terms and conditions:
- One-time payment to IRAS only
- Charge date is on or before 31st July 2021
- One use per account
- Valid for any Singapore-issued Visa or Mastercard
- Code cannot be retroactively claimed
There is no upper cap on the tax amount paid under this promotion, however if you have a particularly large tax payment to make, do contact the ipaymy team via email@example.com for a special concession rate.
The offer is available to both new and existing ipaymy personal account holders. Simply use the promo code TAX2021 at the ‘Payment Details’ stage.
|One-time IRAS income tax payment with a Singapore-issued Visa or Mastercard.|
Remember this is a one-time use promo code, so to maximise the value you should pay your annual tax as a single lump sum where possible.
Cost per mile
Here’s how the all-important cost per mile looks for some popular Visa and Mastercard credit cards issued in Singapore.
You can refer to the latest full list of cards awarding points and miles for ipaymy transactions here.
|Card||Miles per S$1||Cost per mile
|UOB PRVI Miles MC/Visa||1.4||1.23¢|
|Standard Chartered Visa Infinite||1.4*||1.23¢*|
|OCBC Voyage Visa||1.3||1.32¢|
|DBS Altitude Visa||1.2||1.43¢|
* 1.4 mpd subject to a minimum spend of S$2,000 in the same statement cycle, otherwise 1 mpd. ipaymy payments do count towards the minimum.
As you can see even with one of the widely-held 1.2 mpd cards like the DBS Altitude Visa and Citi PremierMiles options, an effective cost per mile of 1.43 cents is competitive.
For those lucky enough to have 1.6 mpd earning cards, the cost per mile drops to an excellent 1.07 cents.
How to pay
Once you’re logged on to ipaymy you’ll be presented with the Dashboard screen. To set up your income tax payment, first click the Tax icon.
You’ll then be invited to enter the details for your tax bill. These should match your IRAS Notice of Assessment (NoA), which you’ll also have to upload as a PDF or scanned copy.
You can download a PDF version of your IRAS NoA once it’s published, by logging on to the IRAS myTax Portal using SingPass.
At the Payment Details screen, you’ll select which saved credit card you wish to use on the left panel, then the regular ipaymy fee of 2.25% will be displayed.
Here’s where you’ll enter the TAX2021 promo code.
Once applied, you should see the fee drop from 2.25% to 1.75%. In the following example an income tax payment of S$10,000 now carries a fee of S$175 (1.75%) instead of S$225 (2.25%).