A tax deduction scheme for donations to charities will be extended for three years, until December 2021, to foster the spirit of giving. For every $1 donated to a charity that is an Institution of a Public Character (IPC), donors get $2.50 deducted off their taxable income. This 250% tax deduction has been in place since 2009.
This is one of the measures to promote volunteerism and philanthropy announced by Finance Minister Heng Swee Keat on 19 February 2018.
The Government is also giving $3 to the Community Development Councils (CDCs) for every $1 they raise in donations, up to a cap of $40 million a year from the 2018 financial year starting in April.
In another move, the Government will match, dollar-for-dollar, donations to the new Empowering for Life Fund (ELF) set up under the President’s Challenge 2018. The fund supports programmes to help vulnerable Singaporeans upgrade their skills to find jobs.
To boost corporate giving, the Business and IPC Partnership Scheme (BIPS), which started in 2016, will be extended for three years until 2021. Firms get a 250% tax deduction on wages and associated expenses when they send their employees to be seconded at or to volunteer at an IPC, or when they provide services to the charity.
In all, the Government has set aside about $190 million a year to support these enhanced measures. These initiatives come as more people volunteer or give to charity, said Mr Heng.
Mr Heng said people who give back to the community are at the core of a caring society.
Read more here.
Source: The Straits Times, 20 February 2018