Tax Deductions for Donations in Singapore

BDO Tax Shots -  Straight-to-the-point insights series on personal tax matters.

Tax Deductions for Donations in Singapore

Supporting charitable causes in Singapore contributes to the community and provides tax benefits for individuals. The Inland Revenue Authority of Singapore (IRAS) offers generous tax deductions for eligible donations to encourage philanthropy.

Eligible Donations

Only donations made to Institutions of a Public Character (IPCs) or the Singapore Government for specific charitable purposes qualify for tax deductions. Eligible donations include:

  1. Cash Donations – Monetary contributions made to IPCs or government-designated charities qualify for a tax deduction of 250% of the donated amount. This enhanced rate has been extended until 31 December 2026.
  2. Shares Donations – Donations of publicly listed shares or units in unit trusts to approved IPCs are eligible for tax deductions.
  3. Land and Building Donations – Contributions of immovable property to IPCs qualify for tax benefits.
  4. Artefact Donations – Donating valuable artefacts to approved museums can provide tax deductions.
  5. Public Art Donations – Contributions of artworks to the National Heritage Board’s Public Art Tax Incentive Scheme are eligible.
  6. Sponsorships – Certain sponsorships to IPCs may qualify as donations if they do not offer the donor advertising or promotional benefits.
Criteria for Tax-Deductible Donations

For a donation to be tax-deductible, it must meet the following criteria:
  • Voluntariness: The donation is a free-will gift where the donor confers all the rights and ownership of the gift to the done.
  • No Material Benefit: It should not be a gift in return for any material benefit or advantage in return. A benefit is regarded as no material benefit if it does not have a commercial value except if the benefit is given in connection with a fund-raising activity or falls within IRAS’ specified list. 
  • Irrevocability: The donor relinquishes all rights to the donated sum or item.
  • Approved Recipient: The donation is made to an approved IPC or the Singapore Government for charitable purposes.
Tax Incentive Schemes for Philanthropic Giving by Singapore-Based Donors
 
Two new schemes are introduced which allow overseas donations, namely: -
  • Philanthropy Tax Incentive Scheme for Family Offices (PTIS)
    • This is an incentive scheme administered by MAS to encourage greater philanthropic giving amongst Single Family Offices. Qualifying donors approved under Scheme can claim 100% deductions for overseas donations subject to meeting certain requirements.
  • Overseas Humanitarian Assistance Tax Deduction Scheme
    • This Scheme encourages Singapore-based donors to support those in need overseas. Under this Scheme, both corporate and individual donors are able to claim a 100% tax deduction for qualifying donations made towards approved overseas emergency humanitarian causes.

Carrying Forward of Unutilised Donations

If your taxable income is insufficient to fully utilise your donation tax deduction in a given year, the excess amount can be carried forward for up to five years. This is not applicable for donations for overseas causes. This allows donors to optimise their tax benefits over time.

How to Check if a Charity is IPC-Approved

Before making a donation, it is important to verify if the charitable organisation is an approved Institution of a Public Character (IPC). You can check the IPC status of an organisation by:

  1. Visiting the Charity Portal at www.charities.gov.sg
  2. Using the IPC Status Search Tool provided by the Inland Revenue Authority of Singapore (IRAS)
  3. Reviewing the list of approved IPCs published by the Commissioner of Charities

How to Claim Your Tax Deduction

Approved IPCs are required to submit tax-deductible donation records to IRAS electronically. These records are automatically included in donors' income tax assessments, eliminating the need for manual claims. You can check the tax deduction records in your IRAS myTax Portal to verify your donation details.

Conclusion

Donating to registered IPCs not only supports charitable causes but also provides significant tax advantages. By understanding which donations qualify and the conditions that a donor must meet to qualify for deductions, you can make informed philanthropic decisions while reducing your taxable income.

If you require our assistance or have any questions, please contact Wu Soo Mee at soomee@bdo.com.sg or Kendrick Boo at kendrickboo@bdo.com.sg.