Charities/IPCs and Taxes

This section includes basic information on Charities, IPCs and GST.

Registered Charity

A registered charity is an organisation set up for charitable purposes and registered with the Commissioner of Charities under the Charities Act (Cap. 37).

For more information on registered charity, please visit the Charity Portal .

 

Institution of a Public Character (IPC)

An IPC is an organisation approved by the Commissioner of Charities to receive tax-deductible donations. This means donors are given tax deduction for donations made to these organizations.

For more information on registered IPCs, please visit the Charity Portal.

Charities and Income Tax

From Year of Assessment (YA) 2008

From YA 2008, registered charities enjoy automatic income tax exemption under section 13(1)(zm) of the Income Tax Act. They do not need to file income tax returns.

Charities and Goods and Services Tax (GST)

Charities are required to register for GST if their annual taxable supplies exceed $1 million even if they are engaged mostly in non-business activities.

For more information on GST registration, please refer to Registering for GST.

Once charities are registered for GST, they are required to charge and account for GST on taxable supplies.

Taxable supplies include grants, donations and sponsorships where benefits are provided to the giver/donor in return for the sum of money or goods/ services.

GST-registered charities may claim input tax incurred for business activities that make taxable supplies, subject to input tax claiming conditions.

For more details, please refer to Essential GST information for Charities and Non-Profit Organisations.

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