Tax deduction scheme for Qualifying Grantmakers

Tax deduction for donors

Donors who make tax deductible donations* to Qualifying Grantmakers would qualify for 250% tax deduction for donations made from 1 Jan 2016 to 31 Dec 2026.

*Tax deductible donations are cash donations made to Qualifying Grantmakers which are intended for IPCs.

How to register as a Qualifying Grantmaker

To register as a Qualifying Grantmaker under the tax deduction scheme, the organisation must submit a Letter of Undertaking (PDF, 113KB) to IRAS and fulfil the following conditions: 

1. Either be a registered charity under the Charities Act or a grantmaker approved under the NPO tax incentive scheme administered by the Singapore Economic Development Board (EDB);
   
2. Channel any tax deductible donations intended for IPCs to a segregated account/fund ("designated IPC fund") that is designated for donations to IPCs only;
   
3. Be responsible for issuing a tax deduction receipt for a tax deductible donation to the donor, and it must distribute such donations to IPCs within five years of receipt of the donations from the donors;
   
4. Be liable to pay to IRAS a financial penalty of the amount ascertained by the formula 0.4x the total value of the donations for:
   
   1. Any amount of tax deduction that has been incorrectly granted or that is not properly due to a donor; and
      
   2. Any amount of tax deduction granted on donations that are not disbursed within the five-year timeframe.
      
5. Distribute any remaining funds/assets to IPCs within one month upon dissolution of the designated IPC fund;
   
6. Put in place proper procedures to ensure that the tax deductible donations are in fact channelled to IPCs;
   
7. Keep proper records such as the identity of each donor, date of donation, amount of donation received from each donor and the amount of tax deduction receipts that was issued to each donor for at least seven years;
   
8. Submit details of tax deductible donations received and disbursed in the format prescribed by IRAS on an annual basis; and
   
9. Subject the designated IPC fund to an annual external audit and submit the annual audited accounts to IRAS within one month of the date of the audit report.

List of Qualifying Grantmakers