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3.23 Economic restructuring will force us to
make tough pragmatic choices. But as we focus
on upgrading ourselves to become a more competitive
economy, we should not inadvertently become less
public-spirited and more self-absorbed individuals.
We must continue to show our care and concern
for fellow Singaporeans, and to contribute as
members of our society to worthy community projects
and services. These softer aspects of life help
to replenish Singapore's social capital, and keep
our society strong and cohesive.
3.24 Singaporeans who do well have a responsibility
to help fellow citizens who are not as well off.
As the rewards increase for the most successful
Singaporeans, and our income distribution stretches
out, it becomes more important that those who
do well contribute back to society. They need
to show they care for, and are grateful to, the
community which nurtured them, gave them opportunities,
and enabled them to succeed.
3.25 Tax measures are one way by which the Government
encourages charitable acts by Singaporeans. In
the current uncertain economic environment, voluntary
organisations face some difficulties in raising
funds. I have therefore decided to introduce the
following measures to promote the spirit of philanthropy
in individuals and corporations:
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i.
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I will allow double tax deduction for donations
to Institutions of a Public Character (IPC).
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ii.
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Tax deductions for donations to IPCs can
now be carried forward for 5 years.
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iii.
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Some IPCs name their buildings or scholarships
after their donors. These and other donations
with similar naming opportunities will now
enjoy tax deduction.
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iv.
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To encourage the administrators of estates
to donate a part of the estate to IPCs,
I will exempt such donations from estate
duty.
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v.
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Qualifying charitable private foundations
will receive IPC status.
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3.26 The details of these measures are at Annex
4.
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