http://www.iras.gov.sg/ESVPortal/resources/etaxguideondonationswithbenefits.pdf
Cash Donations
Cash Donations to any approved Institution of a Public Character
(IPC) or the Singapore Government which benefit the local community
is tax-deductible.
Not all registered charities are approved IPCs. Donations made to a
charity without approved IPC status is NOT income
tax-deductible.
Only outright donations that do not provide a material benefit to
the donor are tax-deductible. However, as a concession, certain
donations made to IPCs on or after 1 May 2006 will be deemed to be
pure donations notwithstanding there is a benefit given in return
for the donation. To qualify for the concessionary tax treatment,
donations with benefits given in return will be regarded as pure
donations if the benefits are treated as having no commercial
value. Benefits are treated as no commercial value if:
1.
the benefit is given in acknowledgement of the donation; and
2.
the benefit has no resale value.
For details on this concessionary tax treatment and a list of
common benefits given in return for donations and their tax
treatment, please refer to the IRAS Circular published on 1 May
2006.
This donation scheme is applicable to both corporate and individual
donors.
What our IRAS rate for individual? around 20% or 18%
The following types of donations would qualify you for a double tax
deduction:
*
Cash Donations
*
Shares Donations
*
Computer Donations
*
Artefact Donations
*
Public Sculpture Donations
*
Land and Building Donations
However, if naming opportunities are granted for any of the above
from 1 January 2002 to 31 December 2004, then only a single tax
deduction is allowed.
With effect from 1 January 2005, Double tax deduction will be
allowed for:
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,
3.
donations under any of the approved donation programme where the
IPC or approved beneficiary acknowledgesthe donation by including
the donor's name or logo in the IPC'scollaterals (e.g. banners,
publications, advertisements).
Double tax deduction will not be granted in cases where the donor
is essentially advertising at the facility, event or programme. For
example, the donor should not be able to display its own banners,
products or other collaterals at the facility, event or programme
that it donated to. The "donation" in that case may instead be
regarded as an advertising or marketing expense for tax
purposes.
