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Tax deduction of 300% for donations this year

SINGAPORE — To encourage Singaporeans to chip in for charities in the nation’s jubilee year, the Government will increase tax deductions for donations made this year, given that such incentives have in recent years helped to significantly increase the number of individual donations made.

SINGAPORE — To encourage Singaporeans to chip in for charities in the nation’s jubilee year, the Government will increase tax deductions for donations made this year, given that such incentives have in recent years helped to significantly increase the number of individual donations made.

The current 250 per cent tax deduction will be increased to 300 per cent for donations this year, with the tax incentive also being extended until the end of 2018.

This means that for every S$1 donated to a registered charity, S$3 will be deducted from the donor’s taxable income for this year. Gifts-in-kind, such as shares, computers, land, buildings and works of art, also qualify for tax deductions.

Making the announcement in his Budget speech yesterday, Finance Minister Tharman Shanmugaratnam said: “On the occasion of our jubilee year, we should take the opportunity to engage in giving to the causes that we feel matter to us as Singaporeans.”

The move follows Social and Family Development Minister Chan Chun Sing’s announcement last month that the Government will set aside another S$250 million for the Care & Share Movement, a nationwide fund-raising initiative, doubling the total government matching grant to S$500 million.

“For every dollar that you donate in 2015, the Government is more than doubling it,” added Mr Tharman.

To encourage the spirit of giving and raise awareness of community causes in the youth, school leaders will work with students to identify causes and charities that they can support — not only by raising funds, but also through doing projects with them in the community.

The Government will donate S$20,000 to each school for use in these projects, while polytechnics and Institutes of Technical Education will get S$150,000 and S$250,000, respectively.

Donations have increased significantly in recent years, with individual donations reaching an all-time high of S$1.25 billion last year — a 30 per cent increase from 2008.

READ THE FULL BUDGET STATEMENT HERE

Other documents on Budget 2015 available on the Budget 2015 website.

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