1. What is the tax rate for bodies of persons?
Bodies of persons are taxable at the same tax rate as a company, which is 17%.
Learn more about how to compute your taxes.
2. My club or similar institution is not-for-profit. Why are we still being taxed?
Although clubs and similar associations are formed for non-profit purposes, they may still derive income from their operations or from other sources. Where the club is not deemed to be carrying on a business, any profits from the operations will not be subject to income tax. Income from other sources, such as rental income and interest income will still be subject to tax.
If your club or similar institution is formed for charitable purposes, you may wish to register it as a charity with the Ministry of Culture, Community and Youth (MCCY). A charity registered under the Charities Act 1994 is exempt from income tax.
3. I intend to set up a club for charitable purposes. Do I still need to register with the Registry of Societies?
Please visit http://www.ros.mha.gov.sg or enquire with the Registry of Societies directly for the requirements on registration of societies.
4. Can I claim capital allowances?
If you are deemed to be carrying on a business, you may claim capital allowances on qualifying capital allowances under the Income Tax Act 1947.
If you are not deemed to be carrying on a business, capital allowances will not be applicable, as the income derived from the operations are not taxable.
5. Can I file my taxes for club & associations electronically?
Filing taxes electronically is currently not available to clubs and associations. Clubs and associations can send in their completed returns, together with the statement of accounts by email to [email protected]. IRAS intends to allow clubs and associations to file electronically in the near future.
Currently, hardcopy Income Tax Returns (Form P1) are issued to all clubs and associations in January each year. Clubs and associations must complete and return the form together with certified statements of accounts by 15 Apr. A softcopy of the form is also available online, which you can download and fill up.
6. How can I inform IRAS about the change of my clubs’ address?
If there are any changes to the address or office bearers (i.e. the president, treasurer, secretary), the office bearers or any other member of the Management Committee may update the changes on Form P1 or write to [email protected].
If your clubs’ address has been updated with the Registry of Societies (ROS), IRAS will be informed about the change in your address.
7. Upon dissolution, how do I obtain a tax clearance letter from IRAS?
You may request for a tax clearance letter by writing to [email protected] or by mail. You are also required to submit all outstanding returns and accounts (up to the date of dissolution) to IRAS:
The Comptroller of Income Tax
Compliance and Small Volume Taxes Branch
55 Newton Road, Revenue House
Upon finalisation of all outstanding tax matters, the tax clearance letter will be issued to you.