You are here
Greater tax deductions from July 1 for firms that encourage staff volunteerism
FROM July 1, 2016, to Dec 31, 2018, businesses will enjoy a total of 250 per cent tax deduction on wages and related expenses when they send their employees to volunteer and provide services to Institutions of a Public Character (IPCs).
In a joint release, the Ministry of Finance, Inland Revenue Authority of Singapore and the Ministry of Culture, Community and Youth said the institutions must come under the Business and IPC Partnership Scheme (BIPS) and are subject to receiving IPCs' agreements.
The services include professional services in various areas, such as legal, human resources and accounting; or general voluntary services for IPCs.
"The scheme aims to spur more businesses to provide services to IPCs, as it will defray the cost of doing so," the authorities said.
BIPS was introduced in Budget 2016 to encourage employee volunteerism through businesses, and forms part of the government's efforts to promote philanthropy and volunteerism.
"In the long run, the Government hopes to foster a widespread culture of caring in Singapore, where businesses and employees can play a greater role in meeting social needs and building a caring and cohesive society," they said.