Farmhouse Plans: Tax Deductible Donation

Tax Deductible Donation

It was announced in Budget 2009 and 2010 that all donations that qualify for double tax deductions and made in calendar year 2009 and 2010 (i.e. 1 January 2009 to 31 December 2010) would temporarily qualify for 2.5 times tax deduction.

To encourage greater charitable giving in Singapore as the economy recovered, the Minister for Finance announced in Budget 2011 that tax deduction of 2.5 times will be extended for another 5 years to donations made from 1 January 2011 to 31 December 2015.

All other conditions for tax deduction remain unchanged, e.g. the carry-forward of donations up to a maximum of five years, order of offset rules (i.e. to allow deduction on the donations on the basis that donations made on an earlier date shall be allowed first), as well as imposing the shareholding test on corporate donors before any donations can be allowed tax deduction.Cash donations to any approved Institution of a Public Character or the Singapore Government that benefit the local community is tax-deductible.