Businesses to get 250% tax deduction by sending employees to do volunteer work

Under the new Business and IPC Partnership Scheme.

Companies will receive a total of 250% tax deduction on wages and related expenses when they send their employees to volunteer and provide services to Institutions of Public Character (IPCs).

Under the new Business and IPC Partnership Scheme (BIPS), firms will enjoy tax deductions when employees provide services including professional services in various areas, such as legal, human resources, and accounting. General voluntary services for IPCs are also covered by the scheme.

The BIPS was introduced in Budget 2016 to encourage employee volunteerism through businesses.

"Through volunteering activities or secondments, businesses and IPCs can build enduring and sustained partnerships, benefiting both parties. In the long run, the Government hopes to foster a widespread culture of caring in Singapore, where businesses and employees can play a greater role in meeting social needs and building a caring and cohesive society," a statement from the government said.