Budget 2023: New tax incentive scheme for donors with family offices

DONORS with family offices operating in Singapore will soon be able to claim a 100 per cent tax deduction for overseas donations through a new Philanthropy Tax Incentive Scheme for Family Offices.

The tax incentive will apply to overseas donations made through qualifying local intermediaries, and capped at 40 per cent of the donor’s statutory income.

To qualify, donors must have a fund under the Monetary Authority of Singapore’s (MAS) section 13O or 13U schemes and meet eligibility conditions, such as incremental business spending of S$200,000.

More details will be provided by MAS by the end of June 2023.

In his Budget speech on Tuesday (Feb 14), Finance Minister Lawrence Wong said he would make some tax adjustments to support businesses and strengthen Singapore’s competitiveness, as well as to enhance the “fairness and resilience” of the country’s tax system.