250% Tax Deduction Under the Business and IPC Partnership Scheme From 1 July 2016 to 31 December 2018
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.
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.
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.
Please visit 250% Tax Deduction Under the Business and IPC Partnership Scheme for more information.