Press Releases

1. From 1 July 2016 to 31 December 2018, businesses will enjoy a total of 250% tax deduction on wages and related expenses when they send their employees to volunteer and provide services, including secondments, to Institutions of a Public Character (IPCs) under the Business and IPC Partnership Scheme (BIPS), subject to receiving IPCs’ agreements. These services include:

a. Professional services in various areas, such as legal, human resources, and accounting; or
b. General voluntary services for IPCs

2. The BIPS was introduced in Budget 2016 to encourage employee volunteerism through businesses, and forms part of the Government’s efforts to promote philanthropy and volunteerism.

3. The scheme aims to spur more businesses to provide services to IPCs, as it will defray the cost of doing so. Through volunteering activities or secondments, businesses and IPCs can build enduring and sustained partnerships, benefiting both parties. Employees will also have more opportunities to use their skills to give back to the community. In the long run, the Government hopes to foster a widespread culture of caring in Singapore, where businesses and employees can play a greater role in meeting social needs and building a caring and cohesive society.

4. The guidelines and FAQs for IPCs interested in participating in the BIPS can be found on the Ministry of Finance and the Charity Portal websites. The FAQs for businesses can be found on IRAS website. See Annex A for the step-by-step guide.

5. For further queries, interested IPCs may contact the Charities Hotline at 6337 6597 or email MCCY_Charities@mccy.gov.sg.


Issued by the Ministry of Finance, Inland Revenue Authority of Singapore and Ministry of Culture, Community and Youth
Singapore
30 June 2016

Annex A