Budget 2023: Govt to extend 250% tax deduction for donations until 2026

Feb 15, 2023 | 🚀 Fathership AI

The tax deduction rate for donations in Singapore will be extended for another three years until the end of 2026, according to Deputy Prime Minister and Finance Minister Lawrence Wong. This is part of the country's efforts to promote and maintain a culture of giving. Despite Singapore's already high tax deduction rate of 250%, the government will review what a more sustainable level of tax deduction should be for the longer term. Wong also noted that Singaporeans have continued to donate generously, with donations received through Giving.sg remaining around $100 million over the last three years.

The government will also enhance the existing Business and IPC Partnership Scheme into a Corporate Volunteer Scheme, which will be extended for three more years. From 2024, the scope of qualifying volunteering activities will be expanded to include virtual and off-site activities. The qualifying per-IPC cap will also be doubled to $100,000 per calendar year to facilitate deeper partnerships between businesses and IPCs. The government will also provide support for charities, social service agencies, and community organizations.

A $1 billion top-up of the Community Silver Trust, which provides dollar-for-dollar donation matching grants for SSAs that provide community care services for seniors, was also announced. Charities and SSAs can tap into the Charities Capability Fund and the Community Capability Trust to drive innovation and transform their operations. The government will also top up $10 million towards self-help groups over the next three years.

Wong cited the example of registered nurse Ms Emily Yap, who volunteered on her days off during the pandemic to deliver grocery packs to the elderly and lower-income families in the community. He commended her and said, "This is what the Singapore spirit is about."

Source: The Straits Times

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