Donations & tax deductions

Cash donations made to an approved Institution of a Public Character (IPC) for causes that benefit the local community, or the Singapore Government are tax deductible donations.

This donation scheme applies to both corporate and individual donors.

Not all registered charities are approved IPCs. Donations made to a charity without approved IPC status are not tax deductible.

Learn if an organisation is an approved IPC at the Charity Portal.

Cash donations with benefits

Only outright cash donations to approved IPC that do not give material benefit to the donor are fully tax deductible.

If a donor receives a benefit in return for the donation made, tax deduction is granted only on the difference between the donation and the value of benefit.

However if the benefits are treated as having no commercial value and the donation is made to IPCs on or after 1 May 2006, it will be deemed as pure donations although there are benefits given in return for the donation. 

What is a benefit with no commercial value

Before 19 Mar 2021

Benefits are treated as having no commercial value if:

1. The benefit is given in acknowledgement of the donation; and
2. The benefit has no resale value.

View details on the concessionary tax treatment and a list of common benefits given in return for donations and their tax treatment in "Tax Treatment on Donations with Benefits (Donations made before 19 March 2021)" (PDF, 83KB).

On or after 19 Mar 2021

Benefits are treated as having no commercial value if:

1. The benefit is given out in connection with a fundraising activity; and
2. The benefit falls within the list of benefits specified in paragraph 6.4 of the IRAS e-Tax Guide for Donations made on or after 19 March 2021.

View details on the concessionary tax treatment and a list of common benefits given in return for donations and their tax treatment in "Tax Treatment on Donations with Benefits (Donations made on or after 19 March 2021)" (PDF, 215KB).

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

The PTIS is an incentive scheme administered by MAS which seeks to encourage greater philanthropic giving among Single Family Offices (“SFOs”) and the growth of philanthropic capabilities in Singapore. Qualifying Donors (“QDs”) approved under the scheme will be able to claim 100% tax deduction for their overseas donations made through Qualifying Local Intermediaries (“QLIs”) for a period of 5 years starting from an approved incentive commencement date within the period from 01 January 2024 to 31 December 2028. The tax deduction is capped at 40% of the Approved QD’s statutory income.

For more information, you may refer to the Monetary Authority of Singapore’s website.

Overseas Humanitarian Assistance Tax Deduction Scheme ^New

The Overseas Humanitarian Assistance Tax Deduction Scheme is a pilot scheme announced in Budget 2024 which seeks to encourage Singaporeans to support those in need overseas.

Under the scheme, corporate and individual donors will be able to claim 100% tax deduction for qualifying cash donations made towards approved overseas emergency humanitarian assistance causes through designated charities with a valid Fund-Raising for Foreign Charitable Purposes permit from the Commissioner of Charities during the period 1 January 2025 to 31 December 2028.

Details of the scheme

1. The tax deduction is capped at 40% of the donor’s statutory income. This cap is to be jointly shared with the Philanthropy Tax Incentive Scheme (PTIS) for Family Offices.
2. The Overseas Humanitarian Assistance Tax Deduction Scheme will be ranked behind PTIS tax deductions but ahead of the 250% tax deductions for qualifying donations.
3. Any unutilised tax deductions cannot be carried forward or transferred to another company under the Group Relief System.
4. The designated charities are:
   1. Singapore Red Cross Society (effective from 1 January 2025)
   2. Mercy Relief Limited (effective from 1 January 2025)
   3. Rahmatan Lil Alamin Foundation Ltd (effective from 1 January 2025)

Donors can check if a designated charity has a valid Fund-Raising for Foreign Charitable Purposes permit that qualifies for the scheme using the Charity Portal's Fund-Raising Permit advanced search function. 

Donations of public shares listed on the Singapore Exchange (SGX) or of units in unit trusts traded in Singapore to approved IPCs are tax deductible. This is only applicable to donations from individual donors only.

Donations of options and shares with restriction on holding periods are not allowed under this donation scheme.

Value of the shares

The approved IPC will determine the value of the donated shares or units. The value of the shares will be based on the price of the same type of shares or units in the open market, at the last transaction of such shares or units on the date of donation.

Date of donation

The date of donation is the date that the legal title is transferred to the approved IPC.

Donations to museums by individual or corporate donors are tax deductible donations if:

1. The museum has obtained the Approved Museum Status with the National Heritage Board (NHB) ; and
2. The artefact has been deemed worthy of collection by NHB.

This donation scheme applies to both corporate and individual donors.

Value of donation

Donors should apply to the museum or NHB to assess the worth of the donated artefact. 

Approved museum status

Museums owned by public organisations can apply to the NHB for the Approved Museum Status. Starting 1 Apr 2006, the Approved Museum Status may be given to non-profit institutions established to acquire artefacts and making them accessible to the public.

From 1 Apr 2006, companies or individuals who donate sculptures or works of art for public display to the National Heritage Board (NHB) or any of its approved recipients qualify for tax deductions.

This scheme is administered by NHB and applies to both corporate and individual donors.

Qualifying donations under PATIS include:

1. Donation of money or services given towards the installation or maintenance of the sculptures or work of art for public display;
2. Donation of a sculpture to an approved recipient for indoor public display; and
3. Public art works which are two or three dimensional with artistic and or heritage merits as desired by NHB.

Value of donation

Donors need to apply to NHB to assess the value of the donated sculpture or work of art. 

From 1 Apr 2003, donations of land or buildings to approved IPCs are tax deductible donations.

This donation scheme applies to both corporate and individual donors.

Market value appraisal

Donors or the approved IPC need to arrange a market value appraisal of the donated property with a property valuer. The IPC should apply to IRAS for an endorsement of the market value of the donated property. 

The cost of valuation is not tax deductible.

Value of donation

The amount of donation is based on the market value of the property endorsed by IRAS. 

Date of donation

The date of donation, for the purposes of claiming the tax deduction, is the date that the property is legally transferred to the approved IPC.

From 1 Jan 2005, the following donations are tax deductible:

1. Donations to name IPCs, IPC facilities, events or programmes;
2. Donations to name facilities of approved beneficiaries (including artefacts and public sculptures) under any of the other approved donation programmes; and
3. Donations under any of the approved donation programmes 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).

The tax deduction on donation is deducted against your statutory income (which includes your employment, trade income, etc.) before arriving at your assessable income.

Example: Donation of $10,000 to an approved IPC for causes that benefit the local community

If your total statutory income for YA 2024 is $100,000 (i.e. you earned $100,000 in 2023) and you donated $10,000 to an IPC in 2023, your assessable income would be calculated as follows:

The donation is included automatically in your tax assessment if:

1. Your employer is under the Auto-inclusion Scheme for Employment Income; and
2. You have arranged for donations to be deducted from payroll.

If your employer is not under the Auto-inclusion Scheme for Employment Income, you may make donation claims for donations made via payroll in your own income tax return.

All companies or bodies of persons must provide their names and tax reference number to the IPCs if they wish to claim tax deductions on their donations.

The donation is included automatically in your tax assessment if: 

1. You have arranged for the donations to be deducted from GIRO; and
2. You have given your NRIC or FIN No. to the IPC at the point of donation.

Donors who wish to remain anonymous and do not wish to claim tax deduction are not required to provide their tax reference numbers to the IPCs.

However, if donors subsequently wish to claim tax deduction, they should provide their tax reference numbers to the IPCs. The IPCs would then resubmit the information to IRAS.

All donations of immoveable properties and  shares to approved IPCs made on or after 1 Mar 2003 will enjoy remission from stamp duty.