Donations & Tax Deductions

Cash donations made to approved IPCs for causes that benefit local community, or the Singapore Government can qualify for tax deductions at 2.5 times the donation amount.

Not all registered charities are approved IPCs. Donations made to a charity without approved IPC status are not tax deductible. Use the Charity Portal to verify if an organisation is an approved IPC before donating.

Cash donations with benefits

Only outright donations without material benefits can qualify for full tax deductions. If you receive a benefit in return, you can only receive tax deduction on the difference between the donation and the value of benefit.

Benefits with no commercial value

For donations made before 19 March 2021, the benefits are treated as having no commercial value if:

• The benefit is given to acknowledge your donation; and
• The benefit has no resale value.

You can refer to IRAS e-Tax Guide for "Tax Treatment on Donations with Benefits (Donations made before 19 March 2021)" (PDF, 205KB).

For donations made on or after 19 March 2021, the benefits are treated as having no commercial value if:

• The benefit is given in connection with specified fundraising activities; and
• The benefit falls within the list of benefits specified in paragraph 6.4 of the IRAS e-Tax Guide for "Tax Treatment on Donations with Benefits (Donations made on or after 19 March 2021)" (PDF, 326KB).
  

Philanthropy Tax Incentive Scheme for Family Offices (PTIS)

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 can get 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 1 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

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.

Donors can receive 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.

The designated charities are:

• Singapore Red Cross Society (effective from 1 January 2025)
• Mercy Relief Limited (effective from 1 January 2025)
• Rahmatan Lil Alamin Foundation Ltd (effective from 1 January 2025)

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.
   

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 unit trust units traded in Singapore to approved IPCs can qualify for tax deductions at 2.5 times the donation amount.

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

Value of donation

The approved IPC will determine the value of the donated shares or units based on the last transaction price on the date of donation.

Date of donation

The date when the legal title is transferred to the approved IPC.

Donation of artefacts to museums can qualify for tax deductions at 2.5 times the value of the artefacts if:

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

Value of donation

Donors should apply to the approved museum or NHB to assess the artefact's value.

Donations of sculptures or artworks for public display to National Heritage Board (NHB) or any of its approved recipients can qualify for tax deductions at 2.5 times.

This scheme is administered by NHB.

Qualifying donations under the PATIS include:

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

Value of donation

Donors should apply to NHB to assess the value of the donated sculpture or artwork.

Donation of land or buildings in Singapore to approved IPCs can qualify for 2.5 times tax deductions.

Market value appraisal

The donor or the approved IPC needs to arrange for a valuation of the donated property with a valuer. The IPC must apply to IRAS for market value endorsement 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 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.

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 approved donation programmes.
3. Donations under any approved donation programmes where the IPC acknowledges your donation by including your name or logo in their collaterals (e.g. banners, publications, advertisements).

The tax deduction on donation reduces 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 local causes

If your total statutory income for YA 2027 is $100,000 (i.e. you earned $100,000 in 2026) and you donated $10,000 to an IPC in 2026, your assessable income would be calculated as follows:

All donors must provide their names and NRIC/ FIN/ Unique Entity Numbers (UEN) to IPCs to claim tax deductions on their donations.