Tax Deduction for Donations: Who Qualifies and What You Get
Learn how you can receive a tax deduction for your charitable contributions and ensure your donations qualify for the tax benefit.
This scheme allows you to reduce your taxable income by claiming a deduction for money you give to certain charitable causes.
Who it's for
This is available to all individuals who pay tax.
What you get
When you give to a qualifying cause, you receive a tax deduction that is 250% of the amount you donated. This means your taxable income is reduced by two and a half times the actual amount you gave.
What it costs you
It costs you the actual amount of money you choose to donate.
The catch to know
Not every charity qualifies for this benefit. To receive the deduction, your donation must be made to an Institution of a Public Character (IPC). If the organization is not an IPC, you will not be able to claim the tax deduction.
How to apply
- Ensure the organization you are donating to is an Institution of a Public Character (IPC).
- Make your donation to the qualifying organization.
- Check that the organization has your details to report the donation to the tax authorities.
- Review your tax filing to confirm the deduction is included.
For more information, visit https://www.iras.gov.sg