Tax
Singapore Eases Tax Rules On Overseas Donations

Tax changes to overseas donations have come into force in Singapore.
The Singapore government is granting donors with family
offices in the city-state 100 per cent tax deductions for
overseas donations.
If donations are made through what are called "qualifying local
intermediaries” the tax deductions will apply, according to
press reports (Business Times, others) on new budget
proposals.
“Raffles Family Office welcomes the Singapore government's
announcement of a new tax incentive for donors with family
offices. This incentive will be instrumental in driving
philanthropic activities in the country, further enhancing
Singapore's reputation as a top-tier wealth management centre and
a regional philanthropy hub,” Kendrick Lee (pictured), managing
partner and co-founder of Raffles Family Office, said. “This tax
incentive scheme has immense potential to augment Singapore's
goal and attract more capital over time. We are anticipating more
details about the incentive's mechanism and implementation.”
It was stated that a tax incentive scheme would be
introduced for qualifying donors with family offices operating in
Singapore. To qualify, donors must have a fund under the Monetary
Authority of Singapore’s (MAS) section 13O or 13U schemes and
meet eligibility conditions, such as incremental business
spending of S$200,000 ($149,556). The tax deduction is capped at
40 per cent of the donor’s statutory income.
The Monetary
Authority of Singapore will give more guidance by 30
June.
Singapore has been rolling out other rules that affect family
offices. For example, new Singaporean rules governing family
offices are now in place. Taking force from April last year,
these organisations face a tougher regime in order to benefit
from tax-exempt incomes, although the Asian city-state is
arguably creating a level of regulatory certainty that did not
previously exist.
The change to the rule on donations appears to be the first time
that overseas donations can capture a tax deduction. Until now,
relief is given to donations to approved Institutions of Public
Character of up to 2.5 times the donation amount.