There are seven types of tax-deductible donations. Please note that not all apply to corporate donors.

 

1) Cash Donations for Local Causes

Cash donations to approved Institutions of a Public Character (IPCs) or the Singapore Government, intended to support local community causes, are tax-deductible for corporate and individual donors. Donations to registered charities without IPC status are not eligible for tax deductions. Only outright cash donations to IPCs without benefits to the donor qualify for a full tax deduction. If a benefit is received in return, the deductible amount is reduced by the value of the benefit. For donations made on or after May 1, 2006, benefits deemed to have no commercial value do not impact the tax deduction.

Definition of Benefits with No Commercial Value

  • Before March 19, 2021: Benefits with no commercial value are those given as a token of acknowledgement and have no resale value.
  • On or after March 19, 2021: Benefits with no commercial value must be connected to fundraising activities and meet criteria outlined in the IRAS e-Tax Guide for donations post-March 19, 2021.

 

2) Cash Donations for Overseas Causes

Philanthropy Tax Incentive Scheme (PTIS) for Family Offices (New)

The PTIS, managed by the Monetary Authority of Singapore (MAS), encourages philanthropic contributions by Single Family Offices (SFOs). Qualified donors under the PTIS can receive a 100% tax deduction on overseas donations through approved local intermediaries for five years, from January 1, 2024, to December 31, 2028, capped at 40% of their statutory income.

Overseas Humanitarian Assistance Tax Deduction Scheme (New)

This pilot scheme, introduced in Budget 2024, incentivizes donations for overseas emergency humanitarian causes. Corporations and individuals can claim a 100% tax deduction on qualifying donations through designated charities between January 1, 2025, and December 31, 2028, capped at 40% of statutory income, shared with PTIS. Deductions under this scheme take precedence over the standard 250% local donation deduction but cannot be carried forward or transferred.

 

3) Donations of Shares (important: for individuals only)

Donations of publicly listed shares or units in Singapore-based unit trusts to IPCs are tax-deductible for individuals only. Donations of options or restricted shares are not eligible. The IPC determines the value based on the last market transaction price on the donation date when legal ownership is transferred.

 

4) Artefact Donations

Tax deductions apply to artefact donations by individuals or corporations if donated to museums with Approved Museum Status by the National Heritage Board (NHB) and deemed valuable by NHB. The museum or NHB assesses the artefact’s value. Approved Museum Status is granted to nonprofit museums open to the public.

 

5) Donations Under the Public Art Tax Incentive Scheme (PATIS)

Since April 1, 2006, companies or individuals who donate sculptures or art for public display to NHB or its approved entities are eligible for tax deductions. This includes donations for installation or maintenance costs, indoor public display sculptures, and two or three-dimensional public artworks with artistic or heritage significance. NHB assesses the value of the donation.

 

6) Land and Building Donations

Donations of land or buildings to IPCs are tax-deductible for both corporate and individual donors since April 1, 2003. The property’s market value, confirmed by IRAS, determines the donation amount. The cost of valuation is not deductible. The donation date, for tax purposes, is the legal transfer date.

 

7) Naming Donations

As of January 1, 2005, tax deductions are allowed for donations used for naming IPCs, facilities, events, or programs, or for donations that recognize the donor’s name or logo in IPC collateral.

 

If you have any queries regarding tax-deductible donations, you can contact the Raffles Corporate Services tax advisory team at [email protected].

 

Yours sincerely,

The editorial team at Raffles Corporate Services