Paying your income tax is not the easiest task, especially with multiple conditions applied after you declare your earnings for the previous year with Inland Revenue Authority of Singapore or IRAS. However, there are many easier ways of paying your taxes in a swift and convenient way using your credit card.
There are a few credit cards in Singapore that allow you to pay your taxes securely apart from the string of deals that they have to offer. In addition, some of these credit cards allow for tax payments in instalments as well. In some instances, credit cards are adjusted with payment wallets that make payments even easier. Moreover, using credit cards to pay taxes will also give you the opportunity to earn cashback, rewards points and more.
Let us take a detailed look at some of the most popular banks credit cards’ that let you pay your taxes:
HSBC IRAS/Tax Paying Programm
Individuals who own HSBC Premier MasterCard, HSBC Advance, and HSBC Visa Infinite, HSBC Visa Platinum or Revolution credit card can make tax payments using their card. These cards give you the opportunity to convert your tax payments into rewards points by simply charging your taxes to your HSBC credit card. You will get the opportunity to earn one rewards point for every dollar charged to your HSBC card, which you can redeem for dining and shopping rewards, or air miles through HSBC’s rewards programme. Supplementary cardholders can also apply for this facility to pay their own taxes. Cardholders have the choice of either opting for a monthly instalment payment over a period of one year or a one-time payment under this programme.
- The option of paying taxes with this plan is only valid with personal cards issued in Singapore.
- The tax payment facility under this programme is applicable only for the tax payable to the IRAS.
- Cardholders are eligible only to pay their own tax. For instance, primary cardholders will not be permitted to pay for supplementary members.
- The payment of taxes under this plan will be annulled after failed deductions over three successive months and cardholders will have to make other payment arrangements with IRAS.
- Cardholders who choose monthly payments will have their partnership in this programme automatically renewed. On the other hand, those who choose one-time payment will have their partnership terminated as soon as the payment is made.
- Cardholders are responsible for the correctness of bank account details and other data in all documents submitted to HSBC.
- The cardholders who opt for this programme will have to pay an administrative fee which is a part of the tax deducted amount:
- HSBC Visa Infinite - 1.5%
- HSBC Advance - 0.7%
- HSBC Visa Platinum
- HSBC Revolution - 0.7%
- HSBC Premier MasterCard - 0.5%
- The administration fee will be mentioned as a separate charge in the card statement.
- It is the responsibility of the cardholder to inform the bank of any changes to the cardholder’s tax status, designated bank, General Interbank Recurring Order or GIRO account and credit card account.
- In case of one-time payment, cardholders are obligated to submit related IRAS documents as demanded by HSBC like the "Notice of Assessment" (NOA) for income.
- Cardholders should have adequate funds available in the appropriate account by the 20th of every month.
- In case of one-time payment applications, HSBC can reject the request if the request date is after the due date specified on the applicant's NOA.
Standard Chartered Tax Payment Programm
Standard Chartered also offers its customers the option of paying their taxes through the Visa Infinite Credit Card and maximise rewards points. A one-time processing fee of 1.6% of your tax amount will be charged.
Procedure of applying for income tax payment facility through Standard Chartered credit cards
- You will have to fill up an application form online and upload the photocopy of the IRAS NOA a minimum of seven days before the due date.
- The amount specified in IRAS NOA is deducted from your card and credited to the preferred bank account.
- Finally, you have to make the compulsory payment arrangements with IRAS. Rewards points is awarded automatically.
Eligibility for the Income Tax payment facility
You will be eligible for the Income Tax payment facility only if you fulfil the following requirements:
- You have enough balance on your card to pay your tax and the processing fee.
- You hold a valid Visa Infinite Credit Card.
- You submit your application seven business days before the due date as specified in your IRAS NOA.
- You have a valid IRAS NOA.
- This facility is not applicable for Priority Banking Visa Infinite cardholder.
How much rewards points will you earn by using your credit card for tax payments?
For paying taxes with your credit card, you will earn 3.5 rewards points for every dollar charged to the card with a minimum spending of S$2,000 in a cycle. If the amount spent is less than S$2,000, then you will get 2.5 rewards points for every dollar charged to the card.
To apply, you will have to visit the official website of the bank and fill up the online application form along with the necessary documents. A bank representative will get in touch with you and take forward the application process.