Budget 2023: Tax deduction for donations extended again; volunteer scheme enhanced
Vivienne Tay
THE Singapore government will extend tax incentives and enhance existing schemes to encourage charitable giving and corporate volunteerism, said Finance Minister Lawrence Wong in his Budget speech on Tuesday (Feb 14).
The 250 per cent tax deduction for qualifying donations made to institutions of a public character (IPCs) will be extended for another three years until the end of 2026. This will apply to donations made from Jan 1, 2024 to Dec 31, 2026.
The existing Business and IPC Partnership Scheme (BIPS), which is due to lapse on Dec 31, 2023, will be folded into a broader Corporate Volunteer Scheme and extended for three more years to Dec 31, 2026.
Under the new Corporate Volunteer Scheme, which comes into effect on Jan 1, 2024, the scope of volunteering activities will be extended to ones conducted virtually or outside the IPCs premises.
Examples include online mentoring and tuition support for youths or children, or refurbishing rental flats. The cap on qualifying expenses for IPCs will also be doubled to S$100,000, from S$50,000 currently.
BIPS provides businesses with a 250 per cent tax deduction on wages and qualifying expenses when their employees volunteer, provide services or are seconded to IPCs. Qualifying expenses have an annual cap of S$250,000 per business and S$50,000 per IPC.
SEE ALSO
Separately, Wong also announced that the Community Silver Trust will get a S$1 billion top-up to support social service agencies that deliver community care services for seniors. Self-help groups will also get a S$10 million top-up over the next three years, he said.
Decoding Asia newsletter: your guide to navigating Asia in a new global order. Sign up here to get Decoding Asia newsletter. Delivered to your inbox. Free.
Copyright SPH Media. All rights reserved.
