Enjoy tax deductions of up to 2.5 times the qualifying donation amount during the next tax season when you donate to Community Chest or any approved Institution of a Public Character (IPC)before the year ends.
On this page:
What are tax deductible donations
These donations are tax deductible:
Cash donations made to an approved Institution of a Public Character (IPC) for causes that benefit the local community, or the Singapore Government are tax deductible donations.
This donation scheme applies to bothcorporate and individual donors.
Not all registered charities are approved IPCs. Donations made to a charity without approved IPC status are not tax deductible.
Learn if an organisation isan approved IPC at theCharity Portal.
Cash donations with benefits
Only outright cash donations to approved IPC that do not give material benefit to the donor are fully tax deductible.
If a donor receives a benefit in return for the donation made, tax deduction is granted only on the difference between the donation and the value of benefit.
However if the benefits are treated as having no commercial value and the donation is made to IPCs on or after 1 May 2006, it will be deemed as pure donations although there are benefits given in return for the donation.
What is a benefit with no commercial value
Before 19 Mar 2021
Benefits are treated as having no commercial value if:
- The benefit is given in acknowledgement of the donation; and
- The benefit has no resale value.
View details on the concessionary tax treatment and a list of common benefits given in return for donations and their tax treatment in "Tax Treatment on Donations with Benefits (Donations made before 19 March 2021)" (PDF, 83KB).
On or after19 Mar 2021
Benefits are treated as having no commercial value if:
- The benefit is given out in connection with a fundraising activity; and
- The benefit falls within the list of benefits specified in paragraph 6.4 of the IRAS e-Tax Guide for Donations made on or after 19 March 2021.
View details on the concessionary tax treatment and a list of common benefits given in return for donations and their tax treatment in "Tax Treatment on Donations with Benefits (Donations made on or after 19 March 2021)" (PDF, 215KB).
Philanthropy Tax Incentive Scheme for Family Offices (PTIS) New
The PTIS is an incentive scheme administered by MAS which seeks to encourage greater philanthropic giving among Single Family Offices (“SFOs”) and the growth of philanthropic capabilities in Singapore. Qualifying Donors (“QDs”) approved under the scheme will be able to claim 100% tax deduction for their overseas donations made through Qualifying Local Intermediaries (“QLIs”) for a period of 5 years starting from an approved incentive commencement date within the period from 01 January 2024 to 31 December 2028. The tax deduction is capped at 40% of the Approved QD’s statutory income.
For more information, you may refer to the Monetary Authority of Singapore’s website.
Overseas Humanitarian Assistance Tax Deduction Scheme New
The Overseas Humanitarian Assistance Tax Deduction Scheme is a pilot scheme announced in Budget 2024 which seeks to encourage Singaporeans to support those in need overseas.
Under the scheme, corporate and individual donors will be able to claim 100% tax deduction for qualifying cash donations made towards approved overseas emergency humanitarian assistance causes through designated charities with a valid Fund-Raising for Foreign Charitable Purposes permit from the Commissioner of Charities during the period 1 January 2025 to 31 December 2028.
Details of the scheme
- The tax deduction is capped at 40% of the donor’s statutory income. This cap isto be jointly shared with the Philanthropy Tax Incentive Scheme (PTIS) for Family Offices.
- TheOverseas Humanitarian Assistance Tax Deduction Scheme will be ranked behind PTIS tax deductions but ahead of the 250% tax deductions for qualifying donations.
- Anyunutilised tax deductions cannot be carried forward or transferred to another company under the Group Relief System.
- The list of designated charities will be made available from 1 January 2025.
The Overseas Humanitarian Assistance Tax Deduction Scheme will be administered by IRAS. More details of the scheme will be released by 30 June 2024.
Donations to museums by individual or corporate donors are tax deductible donations if:
- The museum has obtained the Approved Museum Statuswith theNational Heritage Board (NHB); and
- The artefact has been deemed worthy of collection by NHB.
This donation scheme applies to bothcorporate and individual donors.
Value of donation
Donors should apply to the museum or NHB to assess the worth of the donated artefact.
Approved museum status
Museums owned by public organisations can apply to the NHB for the Approved Museum Status. Starting 1 Apr 2006, the Approved Museum Status may be given to non-profit institutions established to acquire artefacts and making them accessible to the public.
From 1 Apr 2006, companies or individuals who donate sculptures or works of art for public display to the National Heritage Board (NHB) or any of its approved recipients qualify for tax deductions.
This scheme is administered by NHB and applies toboth corporate and individual donors.
Qualifying donations under PATIS include:
- Donation of money or services given towards the installation or maintenance of the sculptures or work of art for public display;
- Donation of a sculpture to an approved recipient for indoor public display; and
- Public art works which are two or three dimensional with artistic and or heritage merits as desired by NHB.
Value of donation
Donors need to apply to NHB to assess the value of the donated sculpture or work of art.
From 1 Apr 2003, donations of land or buildings to approved IPCs are tax deductible donations.
This donation scheme applies toboth corporate and individual donors.
Market value appraisal
Donors or the approved IPC need to arrange a market value appraisal of the donated property with a property valuer. The IPC shouldapply to IRASfor an endorsem*nt of the market value of the donated property.
The cost of valuation is not tax deductible.
Value of donation
The amount of donation is based on the market value of the property endorsed by IRAS.
Date of donation
The date of donation, for the purposes of claiming the tax deduction, is the date that the property is legally transferred to the approved IPC.
From 1 Jan 2005, the following donations are tax deductible:
- Donations to name IPCs, IPC facilities, events or programmes;
- Donations to name facilities of approved beneficiaries (including artefacts and public sculptures) under any of the other approved donation programmes; and
- Donations under any of the approved donation programmes where the IPC or approved beneficiary acknowledges the donation by including the donor's name or logo in the IPC's collaterals (e.g. banners, publications, advertisem*nts).
What are non-tax deductible donations
The following types of donations are non-tax deductible:
- Donations of goods that do not fall within the list of tax deductible donations.
- Donations made to charities that are not approved IPCs.
When will contributions not be considered donations
A contribution will not qualify as a tax deductible donation if the contribution is governed by an agreement which includes any of the following attributes:
- The contribution agreement contains a refund clause, where the recipient is obliged to refund (wholly or in part) the contribution or make other compensation arrangements to the contributor; or
- Thecontribution agreement contains an ‘exclusivity’ clause which prevents the recipient from accepting funds/contributions from and/or acknowledging other contributors/donors, regardless of whether the latter are from the same industry as the contributor; or
- The contribution arrangement is in substance a commercial arrangement or an exchange of monies for benefits. Such arrangements include outright sales of goods or services, instances where the contributor derives substantial commercial benefits from the contribution arrangement, or instances where the contributor retains contractual rights over the sum contributed.
View details on what contributions are considered donations and eligible for tax deduction in "Guidance on Tax Deductible Donations" (PDF, 295KB).
How much tax deduction can you get
The tax deduction on donation is deducted against your statutory income (which includes your employment, trade income, etc.) before arriving at your assessable income.
| Computation | ||||
|---|---|---|---|---|
Total statutory income | ||||
| Less: Donations | ||||
=Assessable income | ||||
| Less: Personal reliefs | ||||
| =Chargeable income |
Example: Donation of $10,000 to an approved IPC for causes that benefit the local community
If your total statutory income for YA 2024 is $100,000 (i.e. you earned $100,000 in 2023) and you donated $10,000 to an IPC in 2023, your assessable income would be calculated as follows:
| Total Statutory Income | Amount of Donation | Amount of Deductible Donations | Assessable Income for YA 2024 |
|---|---|---|---|
| $100,000 | $10,000 | $25,000 ($10,000 x 2.5) | = $75,000 ($100,000 - $25,000) |
How to claim tax deductible donations
Tax deduction is given for donations made in the preceding year. For example, if an individual makes a donation in 2023, tax deduction will be allowed in his tax assessment for the Year of Assessment (YA) 2024.
You do not need to declare the donation amount in your income tax return. Tax deductions for qualifying donations are automatically reflected in your tax assessments based on the information from the IPC (such as the donor's name, date and amount of donation on the tax deduction receipt).
IRAS does not accept claims for tax deduction based on donation receipts.
From 1 Jan 2011, individuals and businesses are requiredto providetheir identificationnumber (e.g. NRIC/FIN/UEN) when making donations to the IPCs if they wish to receive tax deductions on the donations made.
Donation receipts
When donations are tax deductible, the donation receipts issued by approved IPCs will indicate the words "Tax Deductible".
The donation is included automatically in your tax assessment if:
- Your employer is under the Auto-inclusion Scheme for Employment Income; and
- You have arranged for donations to be deducted from payroll.
If your employer is not under the Auto-inclusion Scheme for Employment Income, you may make donation claims for donations made via payroll in your own income tax return.
All companies orbodies of personsmust provide their names and tax reference number to the IPCs if they wish to claim tax deductions on their donations.
The donation is included automatically in your tax assessment if:
- You have arranged forthe donations to be deducted from GIRO; and
- You have given your NRIC or FIN No. to the IPC at the point of donation.
Donors who wish to remain anonymous and do not wish to claim tax deduction are not required to provide their tax reference numbers to the IPCs.
However, if donors subsequently wish to claim tax deduction, they should provide their tax reference numbers to the IPCs. The IPCs would then resubmit the information to IRAS.
Carrying forward of unutilised tax deduction for donations to IPCs
When the tax deduction for the donation ismore thanthe income for the year, the qualifying donor (i.e. individuals, companies, trusts, bodies of persons)may carry forward the unutilised deductions for a maximum of 5 years. This is not applicable for donations for overseas causes.
For example, a donation made in 2023 and allowed tax deduction in YA 2024 can be carried forward (if tax deduction for donation exceeds the income for 2023) up to YA 2029.
Corporate donors must satisfy theshareholding testif they want to deduct the unutilised tax deduction for donations against their future income (similar to that imposed for claim of carry forward of trade losses and unutilised capital allowances). Unutilised donations will rank for deduction after trade losses and capital allowances.
Remission from stamp duties
All donations ofimmoveable propertiesand sharesto approved IPCs made on or after 1 Mar 2003 will enjoy remission from stamp duty.
