What kind of donations are tax deductible?

Today's post is extremely important because it lists out the type of donations that is tax deductible. Do note that not all kinds of donations would entitles one to tax deduction. The type of donations that are tax deductible are:

1) Cash donations

Cash donations to any Institution of a Public Character (IPC) or the Singapore Government that benefit the local community who entitle one to have tax deduction.Only donations which does not have any material benefit to the donor are tax-deductible.Donations with benefits that have no commercial value will be treated as pure donations. 

2) Shares donations

Shares that are listed on the Singapore Excahnge(SGX) /units in unit trusts that can be traded to approved IPCs are tax deductible.The value of the shares will be determined based on the price of similar type of shares or units in the open market on the date of the donation.

This only applies to individual owners.

3)Computer donations

Donating of computers (including computer hardware, software, accessories and peripherals such as monitors, printers, and scanners) to prescribed educational institutions in Singapore are tax-deductible.

One would need to get approval from the Infocomm Development Authority of Singapore(IDA) regarding to the types of hardware and/or software that can be donated .Donors would be required to apply to IDA via info@ida.gov.sg to determine the value of the donated equipment.

4) Artefact Donations

Artefact donations to museums which have obtained the approved museum status by the National Heritage Board would qualify for tax deduction.Most importantly, the artefact needs to be a worthy collection item. In order to determine the value of the donated artefact, donors should apply to the Museum.

5) Public Art Tax Incentive Scheme 

If one donate sculptures or work of art for public display to the National Heritage Board(NHB) or any approved recipients,they would qualify for tax deduction.To determine the value, donors should apply to the NHB to determine the value of the donated public art.

6) Land and Building Donation

Donation of land and building to approved IPCs are tax deductible.Donors /approved IPC will have to get a market value appraisal of the donated property by a licensed property valuer.The amount of donation is based on the market value of the property given by IRAS. 

Information from Inland Revenue Authority Of Singapore.(http://www.iras.gov.sg)