Philanthropy Tax Incentive Scheme for Family Offices
The PTIS seeks to encourage greater philanthropic giving among Single Family Offices (“SFOs”) and the growth of philanthropic capabilities in Singapore. The scheme is scoped to SFO applicants who are managing a fund(s) under Section 13O (“S13O”) or Section 13U (“S13U”) of the Income Tax Act 1947.
Encouraging more philanthropic activities overseas through Singapore
Giving Using Singapore as a Base: 100% Tax Deduction for Overseas Donations capped at 40% of Donor's Statutory Income.
Conditions Qualifying Single Family Offices managing Section 13O/U fund must:
Appoint and maintain Philanthropy Professional (inhouse or outsource)
Incur additional local business spending of S$200,000
Employ one additional local Professional Headcount
Qualifying Local Intermediaries
Recipient of tax deduction (Choose maximum one over 5 years)
The Single Family Office managing the S13O/U Fund
An Ultimate Beneficial Owner of the S13O/U Fund
A Beneficiary of the S13O/U Fund
Related Family Business i.e. an unlisted corporate entity that is based in Singapore and whose largest shareholder belongs to the same family as the UBO(s) or Beneficiary(ies) of the S13O/U Fund.
Selected Registered and Exempt Charities with a valid Fundraising for Foreign Charitable Purpose Permit
Charitable Institutions and Not-For Profit Organisations established by Financial institutions in Singapore, as specified by MAS
Selected Grantmakers under MCCY’s Grantmaker Scheme
Other Selected Entities, as approved by MAS
Overseas Donations’ refer to cash donations made towards any charitable, benevolent, or philanthropic purpose whose main objective is to benefit persons, events or objects outside of Singapore, where donations are as defined in Paragraph 5.1 of IRAS’ e-Tax Guide – Guidance on Tax Deductible Donations.
Overseas Donations which are made towards Innovative Forms of Philanthropy (i.e. blended finance structures, social impact bonds, impact investments, venture philanthropy) can receive 100% tax deductions under PTIS provided that the:
Qualifying Local Intermediary abide by the rules and regulations relevant to its charity registration status;
PTIS incentive applicants and donations meet the incentive and eligibility criteria within PTIS; and,
Approved Qualifying Donor who received the 100% tax deduction under PTIS is unable to retrieve the principal amount nor any returns generated as a result of their participation.
Application forms for interested SFOs will be made available from 1 September 2023 onwards. Prospective Qualifying Local Intermediaries may submit interest to firstname.lastname@example.org with the following subject title “PTIS QLI Application: (Name of Intermediary)."
For further enquiries on PTIS, please write to email@example.com with the following subject title: “PTIS Enquiry: “Name of (SFO & 13OU Fund)/Name of (Intermediary)”".