250% tax deduction under the Business and IPC Partnership Scheme

1. From 1 July 2016 to 31 December 2018, businesses will enjoy a total of 250% tax deduction on wages and related expenses when they send their employees to volunteer and provide services, including secondments, to Institutions of a Public Character (IPCs) under the Business and IPC Partnership Scheme (BIPS), subject to receiving IPCs’ agreements. These services include:

   • a. Professional services in various areas, such as legal, human resources, and accounting; or
     b. General voluntary services for IPCs.

2. The BIPS was introduced in Budget 2016 to encourage employee volunteerism through businesses, and forms part of the Government’s efforts to promote philanthropy and volunteerism.

3. The scheme aims to spur more businesses to provide services to IPCs, as it will defray the cost of doing so. Through volunteering activities or secondments, businesses and IPCs can build enduring and sustained partnerships, benefiting both parties. Employees will also have more opportunities to use their skills to give back to the community. In the long run, the Government hopes to foster a widespread culture of caring in Singapore, where businesses and employees can play a greater role in meeting social needs and building a caring and cohesive society.

4. The guidelines and FAQs for IPCs interested in participating in the BIPS can be found on the Ministry of Finance and the Charity Portal websites. The FAQs for businesses can be found on IRAS website.

5. For further queries, interested IPCs may contact the Charities Hotline at 6337 6597 or email MCCY_Charities@mccy.gov.sg.

Issued by the Ministry of Finance, Inland Revenue Authority of Singapore and Ministry of Culture, Community and Youth
Singapore
30 June 2016

For media enquiries, please contact:
Name: Jenny Ng
Tel: 6332 8290
Email: jenny_ng@mof.gov.sg

Name: Yvonne Yim
Tel: 6351 2076
Email: yvonne_yim@iras.gov.sg

About Ministry of Finance
The Ministry of Finance aims to advance the well-being and development of Singapore through Finance. The Ministry strives to achieve a balanced budget through prudent fiscal policy, foster a regulatory environment conducive to business and enterprise, ensure prudent investment of the Government's reserves and other public funds, and sets policies for government procurement, e-government, customs regulation, accounting standards and business regulation.

We achieve this together with our departments (Accountant-General’s Department, Singapore Customs and Vital.org – Centre for Shared Services), and statutory boards (Accounting & Corporate Regulatory Authority, Inland Revenue Authority of Singapore and Tote Board).

For more information, please visit www.mof.gov.sg.

About Inland Revenue Authority of Singapore
The Inland Revenue Authority of Singapore (IRAS) is the largest revenue agency in Singapore responsible for the administration of taxes. We are a partner of the community in nation-building and inclusive growth. We support Singapore’s sustainable economic growth by fostering a competitive tax environment and administering Government schemes.

For more information, please visit www.iras.gov.sg, and follow IRAS on facebook.com/irassg and twitter.com/iras_sg.

About Ministry of Culture, Community and Youth
The Ministry of Culture, Community and Youth seeks to inspire Singaporeans through the arts and sports, strengthen community bonds, and promote volunteerism and philanthropy. Since its inception in November 2012, MCCY has been actively engaging the arts, heritage, sports, community, and youth sectors. The Ministry aims to bring into sharper focus the efforts to build a more cohesive and vibrant society, and to deepen a sense of identity and belonging to the nation. MCCY will work with its stakeholders to create an environment where Singaporeans can pursue their aspirations for a better quality of life and together, build a gracious and caring society we are proud to call home.