Tax deductible donation Singapore can help your business support the community and reduce tax at the same time.
If you make qualifying tax-deductible donations in Singapore to Community Chest or approved Institutions of a Public Character (IPCs), you can enjoy up to 2.5 times (250%) tax deduction on the donation amount in the next tax season.
Businesses can also see how these deductions impact their final tax bill using this corporate tax calculator.
This enhanced 250% tax deduction for qualifying donations is currently available until 31 December 2026.
In this guide, we cover:
- What tax-deductible donations are
- Which donations are tax-deductible and which are not
- How much tax deduction you can get
- How to claim these deductions as an individual or a business
What are tax-deductible donations in Singapore?
A tax deductible donation Singapore is a gift that can be used to reduce your statutory income before tax is calculated.
In Singapore, a donation is usually tax-deductible if:
- It is made to Community Chest, an approved IPC, or the Singapore Government for causes that benefit the local community; and
- It is a pure gift, with no material commercial benefit given back to you in return (or only benefits that IRAS treats as having no commercial value).
This applies to both:
- Individuals making charitable donations, and
- Companies or other entities making donations as part of their tax planning.
Important: Not all registered charities are IPCs. Donations to charities that are not IPCs are usually not tax-deductible, even though they are still charitable. You can check if an organisation is an IPC via the Charity Portal.
Skip the confusion.
What donations are tax-deductible in Singapore?
Here are the main types of tax-deductible donations in Singapore for local causes.
1. Cash donations (local causes)
Cash donations are the simplest and most common.
Tax-deductible cash donations include:
- Cash donations to Community Chest
- Cash donations to approved IPCs for causes that benefit the local community
- Cash donations to the Singapore Government for local community benefit
This applies to both individuals and corporates.
Cash donations with benefits
- If you receive a material benefit in return (e.g., event tickets, vouchers, substantial advertising), only the donation amount minus the value of the benefit is tax-deductible.
- Some small “thank you” items given in connection with fundraising activities may be treated as having no commercial value under IRAS rules. In these cases, the full donation can still qualify.
As a rule of thumb: If what you receive back could clearly be sold or has obvious commercial value, do not assume the full amount is deductible.
2. Shares donations (individuals)
Individuals can make tax-deductible donations of shares if:
- The shares are publicly listed on SGX, or
- The units are in unit trusts traded in Singapore, and
- The donation is made to an approved IPC.
Key points:
- This scheme applies to individual donors only.
- Options and shares with holding restrictions are not allowed.
- The IPC determines the value of the donated shares/units based on the last market transaction price on the date of donation.
- The date of donation is when the legal title to the shares/units is transferred to the IPC.
3. Artefact donations (to approved museums)
Donations of artefacts can be tax-deductible if:
- The museum has Approved Museum Status from the National Heritage Board (NHB); and
- NHB has deemed the artefact worthy of collection.
This donation scheme applies to both individuals and companies.
The value of the donation is based on an assessment by the museum or NHB.
4. Public Art Tax Incentive Scheme (PATIS)
Under the Public Art Tax Incentive Scheme (PATIS), individuals and companies can claim tax deductions for donations of sculptures or works of art for public display, if:
- The donation is made to NHB or one of its approved recipients, and
- The artwork meets the criteria for public art under NHB guidelines.
Qualifying donations can include:
- Cash or services given towards the installation or maintenance of public art
- Donation of sculptures for indoor public display
- Eligible public artworks with artistic or heritage merit
The value is determined by NHB, based on the artwork donated or the services funded.
5. Land & building donations
From 1 April 2003, donations of land or buildings to approved IPCs are tax-deductible.
Key points:
- Applies to both corporate and individual donors
- A market value appraisal by a property valuer is required
- The IPC must apply to IRAS to endorse the market value of the property
- The cost of valuation is not tax-deductible
- The date of donation is the date the property is legally transferred to the IPC
All donations of immovable properties and qualifying shares to approved IPCs made on or after 1 March 2003 enjoy stamp duty remission.
6. Naming donations
From 1 January 2005, certain naming-related donations are also tax-deductible, for example:
- Donations to name IPCs, IPC facilities, events or programmes
- Donations to name facilities of other approved beneficiaries (e.g., artefacts, public sculptures) under donation programmes
- Donations where the IPC or beneficiary acknowledges the donor by including the donor’s name or logo in collaterals (banners, publications, advertisements), as long as IRAS still views it as a donation and not a commercial sponsorship
What donations are not tax-deductible in Singapore?
The following are non-tax-deductible:
- Donations of goods that do not fall within the approved donation types above
- Donations made to charities that are not IPCs
- Contributions that are essentially commercial arrangements, such as:
- Contributions with a refund clause in the agreement
- Contributions with an exclusivity clause preventing the charity from accepting or acknowledging other donors
- Payments that are in substance advertising, sponsorship, or purchase of goods/services, where you get substantial commercial benefits in return
If the arrangement looks more like buying exposure or rights than making a gift, it is usually not treated as a tax-deductible donation.
How much tax deduction can you get through donations in Singapore?
For qualifying donations to Community Chest, IPCs and other approved local causes, you can enjoy a tax deduction of 250% of the donation amount.
Example (from IRAS-style computation):
- Total statutory income (YA 2025): $100,000
- Donation in 2024 to an IPC: $10,000
- Amount of deductible donations: $10,000 × 2.5 = $25,000
- Assessable income for YA 2025: $100,000 – $25,000 = $75,000
In simple terms: A $10,000 tax-deductible donation in Singapore can reduce your taxable income by $25,000, if it qualifies for the 250% scheme.
To understand how this reduction affects your final tax payable, see the updated Singapore tax brackets.
Carrying forward unutilised donations
If your donation tax deduction is more than your income for the year, and the donation is to IPCs / local causes:
- Any unutilised deduction can generally be carried forward for up to 5 Years of Assessment.
- This applies to individuals, companies, trusts and bodies of persons.
- For companies, the shareholding test applies (similar to using carried-forward losses and capital allowances).
- Unutilised donations are used after trade losses and capital allowances.
Example: A donation made in 2024 and allowed as a deduction in YA 2025 can be carried forward (if not fully used) up to YA 2030, subject to the usual conditions.
How to claim tax deductible donation Singapore
For most people and businesses, you don’t have to manually claim your tax-deductible donations.
Here’s how it works:
- You make the donation to an IPC, Community Chest or other approved body.
- You provide your NRIC / FIN / UEN at the point of donation (required since 1 Jan 2011 if you want tax deduction).
- The IPC submits your donor information, date and amount electronically to IRAS.
- The donation is automatically reflected in your tax assessment for the correct Year of Assessment.
IRAS does not accept claims based on receipts alone, and you usually don’t need to enter the donation in your tax return. Still, you should:
- Keep your donation receipts (they will say “Tax Deductible” if they qualify)
- Keep your own internal records for accounting and audit purposes
- Check your Notice of Assessment to make sure the donation amount is reflected
For corporate and payroll/GIRO donations, the process is similar – as long as the IPC and, where relevant, your employer or bank, submit the correct details, it flows into your tax assessment automatically.
How Sleek helps you maximise your tax-deductible donations in Singapore
Using tax-deductible donations strategically can improve your tax position, strengthen your CSR/ESG profile, and show meaningful support for local causes. With Singapore’s enhanced 250% tax deduction available until 31 December 2026, this is the perfect time for businesses to align charitable giving with smarter tax planning.
At Sleek, we help thousands of businesses navigate Singapore’s tax landscape with clarity and confidence. Whether you’re making your first charitable donation or planning larger annual contributions, our tax experts can help you:
- Identify which donations qualify and how they impact your taxable income
- Confirm IPC status, review eligibility, and avoid costly compliance mistakes
- Plan and structure donations as part of a broader tax optimisation strategy
- Manage documentation, UEN submissions, and ensure deductions show up correctly
- Align your giving with your company’s CSR, ESG, and business goals
- Stay up to date with the latest IRAS guidelines so you remain fully compliant
By working with Sleek, you get more than just tax guidance. You get a partner who ensures your contributions create maximum impact for the community and your business.
⚖️ Note: This article provides general information and is not tax or legal advice. Always refer to the latest IRAS updates or speak with a qualified tax professional.
Ready to make your donations work smarter for you?
FAQs on tax deductible donations in Singapore
What donations qualify for tax deduction in Singapore?
In Singapore, a donation is tax-deductible only if it’s made to Community Chest, an approved IPC, or certain government-linked local causes. Cash donations, approved share donations, artefact donations and public art donations under PATIS are common qualifying types.
If the charity is not an IPC, the donation is not tax-deductible.
How much tax deduction do I get for donations in Singapore?
For eligible donations, you can claim 250% tax deduction (2.5 times the donation amount) on your statutory income. This enhanced rate is available for donations made up to 31 December 2026.
Are all charitable donations in Singapore tax-deductible?
No. Only donations made to approved IPCs or Community Chest qualify. Donations to regular charities, religious organisations, crowdfunding campaigns, or overseas causes do not give tax deductions unless they fall under specific authorised schemes.
Do sponsorships count as tax-deductible donations in Singapore?
Usually no. If you receive advertising, branding, exposure, commercial benefits, event tickets, or promotional value in return, IRAS will treat it as sponsorship, not a donation. Only the pure donation portion (if any) may be deductible.
Do I need to declare tax-deductible donations in my tax return?
No. As long as you provide your NRIC/FIN/UEN at the point of donation, the IPC submits the information to IRAS and your deduction is auto-included in your tax assessment.
Can businesses claim tax deductions for donations in Singapore?
Yes. Companies can claim tax-deductible donations in Singapore as long as they donate to approved IPCs and provide their UEN. Unused deductions from local IPC donations can usually be carried forward for up to 5 YAs, subject to shareholding rules.
If I get a small gift in return, is my donation still tax-deductible in Singapore?
If the item has no commercial value (e.g., a token from a fundraising event), the full donation may still qualify. If the benefit has resale or commercial value, only the net donation amount after subtracting the benefit’s value is deductible.
How do I maximise my tax-deductible donations as a Singapore business?
To get the most out of the 250% deduction:
- Donate to approved IPCs
- Check IPC status in advance
- Keep records and ensure your UEN is submitted
- Align donations with your tax planning and CSR/ESG goals
- Work with an accountant to ensure correct recognition on your tax assessment
Are overseas donations tax-deductible in Singapore?
Generally, no. Tax deductions mostly apply to local donations made to Community Chest, approved IPCs, or the Singapore Government.
However, two special schemes allow 100% tax deductions for certain overseas donations:
- PTIS (for qualifying family offices)
- Overseas Humanitarian Assistance Tax Deduction Scheme (via designated charities)
Both schemes have specific eligibility rules, are capped at 40% of statutory income, and do not allow carry-forward of unused deductions.
450,000
businesses worldwide.
from 4,100+ reviews.
satisfaction rate from
16,000 surveyed clients.
