Collecting Donations and Issuing Tax Deduction Receipts (for IPCs only)
Issuance of Tax Deduction Receipts
IPCs have been authorised to issue tax deduction receipts for qualifying donations. Your IPC should therefore put in place documented policies and procedures to ensure that tax deduction receipts are issued for qualifying donations received by the IPC and appropriately authorised by the IPC prior to the issuance. Tax deduction receipts must not be issued for any donation that is not a tax deductible donation or after the approval as an IPC has expired, been suspended or revoked.
A tax deduction receipt should contain or incorporate the following:
- To indicate:"This receipt is for your retention. This donation is tax deductible and the deduction will be automatically included in your tax assessment as you have provided your Tax Reference number (e.g. NRIC/FIN/UEN). You do not need to claim the deduction in your tax form.";
- State the name of the Sector Administrator, where applicable; and
- Be serially numbered.
Your IPC can also use the electronic medium provided by the Inland Revenue Authority of Singapore (IRAS) to issue the tax deduction receipts.
Donations Records
Your IPC has to maintain a record showing the particulars of every tax deductible donation received. The record should include the following:
- Receipt number (in numerical sequence);
- Name of the donor;
- Identification number, or corporate or business registration number, of the donor;
- Date on which the donation was received;
- Type of donation received;
- Amount or value of the donation received; and
- Any terms and conditions under which the donation was made.
These records must be kept for at least 5 years from the end of the year of assessment relating to the year in which the donation was received.
IRAS has issued a list of
good practices on internal controls for the reporting of tax deductible donations which IPCs are encouraged to adopt.
Tax Deductibility of Donations
Please visit the
Inland Revenue Authority of Singapore (IRAS) website for more information on the various types of donations which will qualify for tax deduction.
