Donate to Community Chest or any approved Institution of a Public Character (IPC) before the year ends, and enjoy tax deductions of 2.5 times the qualifying donation amount next tax season.
Find out more about the different types of donations and their respective tax deductibility, as well as how to claim these tax deductions.
Tax Deductible Donations
These donations are tax deductible:
1. Cash Donations
2. Shares Donations
3. Computer Donations
4. Artefact Donations
5. Donations under the Public Art Tax Incentive Scheme (PATIS)
6. Land and Building Donations
1. Cash Donations
Cash donations made to an approved Institution of a Public Character (IPC) or the Singapore Government for causes that benefit the local community are deductible donations.
Not all registered charities are approved IPCs. Donations made to a charity without approved IPC status are not tax-deductible.
Cash Donations with Benefits
Only outright cash donations that do not give material benefit to the donor are fully tax-deductible. When a donor receives a benefit in return for the donation made, tax deduction is granted only on the difference between the donation and the value of benefit. However, as a concession, certain donations made to IPCs on or after 1 May 2006 will be deemed as pure donations although there is benefit given in return for the donation. To qualify for the concessionary tax treatment, donations with benefits given in return will be treated as pure donations if the benefits are treated as having no commercial value.
Before 19 Mar 2021
Benefits are treated as having no commercial value if:
1. the benefit is given in acknowledgement of the donation;
2. the benefit has no resale value.
On or after 19 Mar 2021
IRAS has reviewed and updated the concessionary tax treatment after consultation with IPCs. To be treated as having no commercial value, the benefits must be:
1. given out in connection with a fundraising activity; and
2. fall within the list of benefits specified in paragraph 6.4 of our e-Tax Guide for Donations made on or after 19 March 2021.
New! For details on the concessionary tax treatment and a list of common benefits given in return for donations and their tax treatment, please refer to the IRAS e-Tax Guide "Tax Treatment on Donations with Benefits (Donations made before 19 March 2021)" and "Tax Treatment on Donations with Benefits (Donations made on or after 19 March 2021)".
This donation scheme applies to both corporate and individual donors.
2. Shares Donations
Gifts of public shares listed on the Singapore Exchange (SGX) or of units in unit trusts traded in Singapore to approved IPCs are tax deductible.
Value of the Shares
The approved IPC will determine the value of the donated shares or units. The value of the shares will be based on the price of the same type of shares or units in the open market, at the last transaction of such shares or units on the date of donation.
Date of Donation
The date of donation is the date on which the legal title is transferred to the approved IPC. Donation of options and shares with restriction on holding periods are not allowed under this donation scheme.
This donation scheme applies to individual donors only.
3. Computer Donations
As announced in Budget 2017, tax deduction scheme for donation of computers will be withdrawn with effect from 21 Feb 2017. A company that donates computers to prescribed educational, research or other institution in Singapore and IPC on or after 21 Feb 2017 would not be eligible for any tax deduction.
Companies that donated computers (including computer hardware, software, accessories and peripherals such as monitors, printers, and scanners) before 21 Feb 2017 would continue to enjoy the 250% tax deduction, subject to the following conditions:
1. The donation is made to prescribed educational, research or other institutions and all IPCs; and
2. The types of hardware and/or software donated are approved by the Infocomm Media Development Authority (IMDA). Donors should apply to IMDA via This email address is being protected from spambots. You need JavaScript enabled to view it. to assess the worth of the donated equipment.
Capital Allowance on Donated Hardware/Software
When a company incurs capital expenditure on computers bought solely for donation purposes, the company cannot claim capital allowance on those computers.
A company may have incurred capital expenditure on computers bought for the purpose of its own trade and fully claimed capital allowance on the computers (i.e. written down value is zero). However, it subsequently does not use them and donates them to one or more IPCs, a balancing charge (BC) equal to the open market value of the donated items (as assessed by IMDA) will be taxed.
This donation scheme applies to corporate donors only.
4. Artefact Donations
Gifts to museums by individual or corporate donors are tax deductible donations provided:
1. The museum has obtained the Approved Museum Status with the National Heritage Board (NHB) ; and
2. The artefact has to be deemed worthy of collection by NHB.
Value of Donation
Donors should apply to the museum or NHB to assess the worth of the donated artefact.
Approved Museum Status
Museums owned by public organisations can apply to the NHB for the Approved Museum Status. Starting 1 Apr 2006, the Approved Museum Status may be given to non-profit institutions established to acquire artefacts and making them accessible to the public.
This donation scheme applies to both corporate and individual donors.
5. Donations under the Public Art Tax Incentive Scheme (PATIS)
From 1 Apr 2006, companies or individuals who donate sculptures or works of art for public display to the National Heritage Board (NHB) or any of its approved recipients will qualify for tax deduction.
Qualifying Donations under PATIS include:
1. donation of money or services given towards the installation or maintenance of the sculptures or work of art for public display;
2. donation of a sculpture to an approved recipient for indoor public display; and
3. public art works which are two or three dimensional with artistic and or heritage merits as desired by NHB.
Value of Donation
Donors need to apply to NHB to assess the value of the donated sculpture or work of art.
This scheme is administered by NHB and applies to both corporate and individual donors.
6. Land and Building Donations
From 1 Apr 2003, gifts of land or buildings to approved IPCs are tax deductible donations.
Market Value Appraisal
Donors or the approved IPC need to arrange a market value appraisal of the donated property with a property valuer. The IPC should apply to IRAS for an endorsement of the market value of the donated property.
Value of Donation
The amount of donation is based on the market value of the property endorsed by IRAS. The cost of valuation is not tax deductible.
Date of Donation
The date of donation, for the purposes of claiming the tax deduction, shall be the date on which the property is legally transferred to the approved IPC.
This donation scheme applies to both corporate and individual donors.
Donations Effective 1 Jan 2005
These donations are also tax deductible as of 1 Jan 2005:
1. Donations to name IPCs, IPC facilities, events or programmes;
2. Donations to name facilities of approved beneficiaries (including artefacts and public sculptures) under any of the other approved donation programmes; and
3. Donations under any of the approved donation programmes where the IPC or approved beneficiary acknowledges the donation by including the donor's name or logo in the IPC's collaterals (e.g. banners, publications, advertisements).
Non-Tax Deductible Donations
These donations are not tax deductible:
1. Donations where the donor is essentially advertising at the IPC facility, event, or programme. Donors displaying their banners, products, or other collaterals at the IPC facility, event, or programme to which it has donated is regarded as advertising or marketing expenses and not a donation; and
2. Donations or gifts that are for a "foreign charitable purpose" (e.g. donations made to some overseas relief funds managed by an approved IPC).
Amount of Tax Deduction
1 January 2016 to 31 December 2023
New! To continue encouraging Singaporeans to give back to the community and to provide strong support for the charity sector, the Minister for Finance has announced in Budget 2021 that the 250% tax deduction for qualifying donations will be extended for another two years till 31 December 2023.
1 January 2015 to 31 December 2015
In conjunction with SG50, the Government has increased the tax deduction for qualifying donations from 250% to 300% of the amount of donation made in 2015. The 300% deduction for donations made from 1 January 2015 to 31 December 2015 (both dates inclusive) will be allowed to all existing qualifying donors (i.e. individuals, companies, trusts, bodies of persons).
Summary of the Deductibility of Approved Donations
| Amount of Deduction | Approved donations (including donations with naming opportunity) made during the period 1 Jan 2009 to 31 Dec 2014 | Approved donations (including donations with naming opportunity) made during the period 1 Jan 2015 to 31 Dec 2015 | Approved donations (including donations with naming opportunity) made during the period 1 Jan 2016 to 31 Dec 2023 |
| 2.5 Times deduction | √ | √ | |
| 3 Times deduction | √ |
Claiming Tax Deductible Donations
Tax deduction is given for donations made in the preceding year. For example, if an individual makes a donation in 2020, tax deduction will be allowed in his tax assessment for the Year of Assessment (YA) 2021.
You do not need to declare the donation amount in your income tax return. Tax deductions for qualifying donations will be automatically reflected in your tax assessments based on the information from the IPC (such as the donor's name, date and amount of donation on the tax deduction receipt). IRAS will no longer accept claims for tax deduction based on donation receipts.
Requirement to Produce Identification to IPCs
From 1 Jan 2011, all individuals and businesses are required to provide their identification number (e.g. NRIC/FIN/UEN) when making donations to the IPCs in order to be given tax deductions on the donations.
Donation Receipts
When donations are tax deductible, the donation receipts issued by approved IPCs will indicate the words "Tax-Deductible".
Source: IRAS
