Business and IPC Partnership Scheme (BIPS)

To encourage corporate volunteerism, businesses may claim 250% tax deduction on qualifying expenditure incurred from 1 July 2016 to 31 Dec 2021 when they send their employees to volunteer and provide services, including secondments, to Institutions of a Public Character (IPCs).

Funding

Businesses will in total receive a 250% tax deduction on the qualifying expenditure incurred, subject to the receiving IPC’s agreement.

Expenditure Cap:

The qualifying expenditure is subject to a cap of $250,000 per business per Year of Assessment (YA). A qualifying expenditure cap of $50,000 is also imposed on each IPC per calendar year.

Qualifying Expenditure

  • Basic wages
  • Other related expenses incurred by the business that were necessary for the provision of services to IPC.

All qualifying expenditure must meet the following requirements :

  1. Not reimbursed by the IPCs at anytime;
  2. Incurred only because of the volunteer services;
  3. Not considered as personal, living, or family expenses; and
  4. Not capital expenditure

For ease of claiming BIPS tax deduction, the following enhancements have been made. From 2 Dec 2019, businesses are allowed:

  • Tax deduction on wage of part-time employees who volunteer with IPCs under BIPS; and
  • An option for businesses to claim tax deduction on wage expenditure based on fixed hourly rates in lieu of actual salary: at $10 per hour for general volunteering and $20 per hour for skills-based volunteering. Skills-based volunteering refers to services which necessitate a qualifying employee to apply work-related expertise, as required by the IPC.

Businesses will in total receive a 250% tax deduction on the qualifying expenditure incurred, subject to the receiving IPC’s agreement.

Expenditure Cap

The qualifying expenditure is subject to a cap of $250,000 per business per Year of Assessment (YA). A qualifying expenditure cap of $50,000 is also imposed on each IPC per calendar year.

Eligibility

All businesses carrying out a trade or business in Singapore are eligible for BIPS when they send their employees* to volunteer and provide services at IPCs. These businesses are:

• Companies, sole proprietorships, partnerships (including limited partnerships and limited liability partnerships) and registered business trusts

• Bodies of persons, e.g. clubs and trade associations, that are deemed to be carrying on a business.

Note: Exclude owners of businesses i.e. sole-proprietors, partners and shareholders who are also directors of the company.

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