By MoneyBees
The 250% IRAS deduction on donations to IPCs, the income tax it saves at your rate, the real cost of the gift and the 5-year carry-forward, outside the S$80,000 relief cap.
2.5 times the amount. A S$1,000 cash donation to an approved IPC for local causes gives a S$2,500 deduction from your income.
Budget 2026 extended it for another three years, to the end of 2029.
No. IRAS deducts donations from your statutory income before personal reliefs, so the cap applies only to your reliefs.
2.5 times the gift times your top tax rate. At an 11.5% rate, a S$1,000 donation saves S$287.50 and costs you S$712.50.
In the next Year of Assessment. Donations made in 2026 are deducted in YA 2027.
No. Give the IPC your NRIC or FIN and the deduction is added to your assessment automatically. IRAS does not accept claims based on receipts.
The unused deduction carries forward for up to 5 years of assessment. This does not apply to donations for overseas causes.
Donations to charities that are not IPCs, goods that are not on IRAS's list, and contributions with refund or exclusivity clauses or that are really a commercial deal. If you get a benefit back, only the amount above its value counts.
Junxiong-WFG Organisation is an authorised representative of AIA Financial Advisers Private Limited (Reg. No. 201715016G).