Tax Deduction for Donations

With effect from 1 January 2005, double tax deductions will be granted for all cash donations to Institutions of a Public Character (IPCs) or the Singapore Government, and certain in-kind donations to approved beneficiaries, whether or not they involve naming opportunities. Prior to 1 Jan 2005, donations with naming opportunities would only be granted a single tax deduction. The extension of the double tax deductions to include donations with naming opportunities is meant to encourage more donors to come forward, to give larger donations, and to cultivate lasting relationships with the beneficiaries they have lent their names to.

The table below further elaborates on the types of donations that will be granted double tax deduction. Other forms of in-kind donations that do not fall under the list will not be awarded double tax deduction.

Donation Scheme

Eligible Recipient

Eligible Donor

Cash donations

Approved IPCsand the Singapore Government

All donors

Gift of shares listed on the Singapore Exchange (SGX)
or of units in unit trusts traded in Singapore

Approved IPCs

Individual donors only

Gifts of computer hardware, software and peripherals

Approved IPCs and prescribed educational,
research or other institutions in Singapore

Corporate donors only

Gifts of artefacts

Approved museums (by the National Heritage Board)

All donors

Donation of public sculptures

The National Heritage Board or approved recipients

All donors

Gifts of parcels of land or buildings

Approved IPCs

All donors

 

In addition, do note that only the following donations with “naming opportunities” will be granted double tax deduction:

a. donations to name IPCs, IPC facilities, events or programmes,

b. donations to name facilities of approved beneficiaries (including artefacts and public sculptures) under any of the other approved donation programmes,

c. donations under any of the approved donation programme 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, advertisements).

These donations are not tax deductible:                                                                                                       

a. Donations where the donor is essentially advertising at the IPC facility, event or programme. Such forms of advertisement include, but are not limited to, the display of the donor's own banners, products, or other collaterals at the IPC facility, event or programme. Such advertisements might be more appropriately regarded as advertising expenses.

b. Donations or gifts that are for a "foreign charitable purpose" (e.g. donations made to some overseas relief funds managed by an approved IPC).

Enhancement to tax deductions on donations

For qualifying donations made during the period from 1 Jan 2009 to 31 Dec 2015, qualifying for tax deduction at 250%. To build a stronger culture of giving and as part of the SG50 jubilee celebration, the tax deduction for qualifying donations made during 2015 is increased from 250% to 300%. Further tax deduction of 250% will be extended for another three years for qualifying donations made during the period from 1 Jan 2016 to 31 Dec 2018. All existing criteria to qualify for tax deduction remain unchanged.

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Last Updated on December 04, 2017
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