Earn Miles for you IRAS Income Tax Payment with Credit Cards – Updated

It’s that time of the year again and I’m sure that many of you are doing your tax return for the year. Earning miles through tax payments is possible and used to be extremely lucrative, but over the last couple of years it has really changed.  Recently ANZ have changed their rates, so this post has been updated to reflect those changes.

ANZ Tax Payment Facility

There are currently two banks that I know of that offer you a tax payment facility: ANZ and HSBC.  They both offer airline miles for paying your taxes through them for a fee.  They both allow you to pay in one installment or stretch out the payments with GIRO.

You’ll only be able to earn Singapore Airlines KrisFlyer Miles or Asia Miles (redeemable on Cathay Pacific and Oneworld).

ANZ Travel Visa Signature Credit Card and Other ANZ Cards – Update 5th May 2015

This is one of my favorite cards for general spending (1.4 Miles per $S1), and the additional benefits like unlimited lounge access make this a good card to have in your wallet.

In addition to that the ANZ card also allows you to earn miles for renewal and importantly for paying your taxes through their tax payment facility.  The earning rates and processing fees are as follows:

Type of Credit Card Travel$/Rewards
Point Earned
Processing
Fee
ANZ Travel Visa Signature Credit Card 0.5 Travel$
for every S$1 charged
1%
ANZ Platinum & Switch Platinum Credit Card 1 Rewards Point
for every S$5 charged
1%
ANZ Signature Priority Banking
Visa Infinite Credit Card
1 Rewards Point
for every S$5 charged
0.5%

Since last year the fees have increased from 0.7% to 1% and the earning rates decreased from 1 to 0.5 Miles per $S1.

This makes using the ANZ Tax Payment facility marginal in terms of value. The new cost per mile works out for ANZ Travel Visa Credit Card holders as 2 cents per mile – assuming $S10,000 tax:

  • Processing fee = 100 (1%)
  • Travel$ Earned  = 5000
  • 100/5000 = 2 cents per mile.

I value KrisFlyer miles at 2 cents per mile – (check here as to why), the value of paying your taxes through ANZ is marginal.  This is cheaper than buying KrisFlyer miles directly and on par with buying them through credit card renewal fees, check out these posts for details:

Buy KrisFlyer Miles Cheaply With Credit Card Renewals in Singapore

The Cheapest Ways for Buying KrisFlyer Miles

For more information on the ANZ Travel Visa Signature Credit card here is our review, the sign-up and the details on the tax payment facility:

ANZ Travel Visa Signature Credit Card Review

ANZ Travel Visa Signature Credit Card

ANZ Tax Payment Facility

Paying Taxes with HSBC Credit Cards

The other bank that offers you miles for your tax payments is HSBC.  According to the HSBC site you’ll only eanr 1 rewards point per $S1 but reader Savage has reported that at least the HSBC Visa Infinite card earns 1 Mile per $S1.

You can find out more about the HSBC tax payment facility here:

HSBC Tax Payment Facility

As with the ANZ Credit Cards you’ll be charged an administration fee:

  • 0.7% HSBC Classic / Gold / Platinum / Revolution / Advance credit card
  • 0.5% HSBC Premier MasterCard credit card.
  • 1.5% HSBC Visa Infinite credit card

I’ve reviewed a few of these cards if you are interested in learning more:

HSBC Revolution
HSBC Visa Infinite credit card

Conclusion

Even though the deal for the ANZ credit card isn’t as good as last year I personally will be using the ANZ tax payment facility as I currently don’t have a HSBC card to be able to use them.  It’s a shame there is a fee for the service but it is worth it for me.

Are there any other tax payment facilities that earn miles that you know of?