Donations and Tax Deductions - Singapore

Donations and Tax Deductions - Singapore | Bestar

Donations & Tax Relief (Singapore)

Donations and Tax Deductions - Singapore

In Singapore, donations to approved Institutions of a Public Character (IPCs) are tax-deductible. This means that when you donate to an approved charity, you can reduce your taxable income, and therefore, the amount of income tax you owe.   

Key points about tax deductions for donations in Singapore:

• 250% tax deduction: For every dollar you donate to an approved IPC, you can deduct $2.50 from your taxable income. This means that if you donate $100, you can reduce your taxable income by $250.   

• Automatic inclusion: If you provide your NRIC/FIN to the IPC when making the donation, the donation amount will be automatically included in your tax assessment. You don't need to claim the deduction separately.

• Approved IPCs: Not all charities are approved IPCs. To ensure your donation is tax-deductible, check if the organization has IPC status on the Charity Portal.   

• Types of donations: Tax deductions are available for various types of donations, including cash donations, shares donations, artifact donations, and donations of land and buildings.

Benefits of donating and claiming tax deductions:

• Supporting worthy causes: Your donations can make a positive impact on the community and help those in need.   

• Reducing your tax burden: By claiming tax deductions for your donations, you can reduce the amount of income tax you owe.   

Additional resources:

• Inland Revenue Authority of Singapore (IRAS): The IRAS website provides detailed information about tax deductions for donations, including a list of approved IPCs and guidelines for claiming deductions.

• Charity Portal: The Charity Portal allows you to search for approved IPCs and learn more about their causes and activities.   

By donating to approved IPCs and claiming tax deductions, you can make a difference in the lives of others while also reducing your tax burden.

How Bestar can Help

Bestar is a tax, accounting, and business advisory firm. We can definitely help you understand and maximize the tax benefits associated with donating in Singapore. Here's how:

1. Expert Guidance on Tax Deductions:

• Understanding the 250% rule: Bestar can clearly explain how the 250% tax deduction works, ensuring you fully grasp the benefits of donating to IPCs.

• Identifying eligible donations: We can advise you on what types of donations qualify for tax deductions (cash, shares, artifacts, etc.) and any specific requirements for each.

• Maximizing your deductions: Bestar can help you strategize your donations to optimize your tax savings, considering your overall financial situation.

2. Ensuring Compliance and Accuracy:

• Staying updated on regulations: Tax laws can change. Bestar keeps abreast of the latest rules regarding donation deductions, ensuring your claims are accurate and compliant.

• Proper documentation: We can guide you on the necessary documentation to keep for your donations, in case of any IRAS queries.

• Accurate tax filing: Bestar can assist you in filing your tax return, ensuring your donations are correctly reported to IRAS for automatic inclusion in your tax assessment.

3. Comprehensive Tax Planning:

• Integrating donations into your tax strategy: Bestar can help you incorporate charitable giving into your overall tax plan, maximizing your deductions while supporting causes you care about.

• Long-term financial planning: We can advise on how donations fit into your long-term financial goals, considering factors like retirement planning and estate planning.

4. Additional Support:

• Answering your questions: Bestar can address any specific questions you have about donating and tax deductions, providing personalized advice based on your circumstances.

• Staying informed: We can keep you informed about any updates or changes to tax laws related to donations.

In essence, Bestar can be your trusted partner in navigating the tax aspects of charitable giving. We can help you make informed decisions, ensuring you maximize your tax benefits while supporting the causes you believe in.

To get the most out of Bestar's services, be sure to:

• Gather information about your donations: Keep records of your donations, including the IPC's name, donation date, and amount.

• Communicate your giving goals: Share your philanthropic interests with Bestar so we can tailor their advice to your specific needs.

By working with Bestar, you can confidently donate to worthy causes, knowing you're making a difference while also optimizing your tax situation.

Request for Quote