SINGAPORE – Singaporeans will be able to claim 100 per cent tax deduction for donations to overseas humanitarian relief efforts, under a new scheme launched in recognition of people’s desire to do good beyond Singapore’s shores.

The Overseas Humanitarian Assistance Tax Deduction Scheme (OHAS) will run for four years as a pilot, from Jan 1, 2025, to Dec 31, 2028.

Announcing the scheme in his Budget speech, Deputy Prime Minister and Finance Minister Lawrence Wong noted that many Singaporeans have readily stepped forward to help those affected by humanitarian crises overseas, such as the devastating earthquake in Turkey and Syria in 2023 and the human tragedy arising from the ongoing Israel-Hamas conflict.

The scheme will encourage Singaporeans to continue to support those who need help – a good thing in a more divided world, as a stronger culture of giving will forge a more caring and gracious Singapore, he said.

DPM Wong also announced further investments in the local arts and sports sectors, which he noted are platforms for people to have common experiences, thereby strengthening the nation’s sense of solidarity.

Over the next four years, the Government will invest $100 million in the refreshed Our SG Arts Plan to drive transformation in the arts sector.

The additional investments will go towards making the arts more accessible to all Singaporeans, unlock more opportunities for the arts to feature in local communities, and support arts groups and artists in developing their offerings and skills, he said.

The Government will also continue to support the Sports Facilities Master Plan, as well as top up the One Team Singapore Fund to the tune of $20 million and extend it to the end of the 2027 financial year. 

Under the masterplan, more sports and recreational facilities will be built in neighbourhoods, and sports centres will be built and refreshed in places such as Toa Payoh, Punggol and Clementi.

The fund, meanwhile, will have a broader scope to support athletes in emerging sports, such as pickleball, tchoukball and powerlifting, and also support SportCares, which provides bursaries for vulnerable children, people with disabilities and seniors to participate in sporting programmes.

There are also moves to anchor more major sports events here so that Singapore’s athletes can compete in top-tier competitions on home ground and people can cheer for them, said DPM Wong. This includes hosting the 2025 World Aquatics Championships and World Aquatics Masters Championships.

The Ministry of Culture, Community and Youth will share more about the arts and sports initiatives when Parliament debates the spending plans of each ministry during the debate on ministries’ budgets.

To be eligible for tax deductions under OHAS, donations must be made through designated charities, a list of which will be published from Jan 1, 2025, said the Ministry of Finance (MOF) in a statement.

Tax deductions under this scheme will be capped at 40 per cent of a donor’s statutory income.

For donors who also receive tax deductions under the Philanthropy Tax Incentive Scheme for Family Offices, the 40 per cent cap will apply jointly to both schemes.

Charities must have emergency humanitarian assistance as part of their objectives to qualify. Such assistance refers to help tied to a specific incident with a clear trigger, including natural disasters or pandemics, among other things, said MOF.

The charities must also have adequate governance and controls to guard against illicit funds.

Charities that qualify will be invited to join the pilot, and will have to apply for a permit from the Commissioner of Charities to raise funds for foreign charitable purposes before they can start collecting donations, added MOF.

Meanwhile, donations to local charities will continue to qualify for a 250 per cent tax deduction until the end of 2026, as announced in Budget 2023.

At home, many Singaporeans who have done well also want to give back, but may not know how or where to start, said DPM Wong.

To help these donors, the Government will do more to advise them on how to effectively direct their resources to support lower-income families.

This effort – first mentioned in the Forward SG report launched in October 2023 – will be led by the Community Foundation of Singapore, in partnership with the Ministry of Social and Family Development and the Community Chest.

To help charities better meet the needs of beneficiaries, the Government will be extending the Charities Capability Fund Collaboration Grant by three years till the end of the 2026 financial year, said DPM Wong.

The grant supports collaboration between charities on projects that enhance their governance, efficiency and capabilities, and will encourage charities to work together, he added.

These moves to build a stronger national identity are ways the Budget is investing in Singapore’s resilience, along with efforts to boost military effectiveness and domestic security, and safeguard energy security, said DPM Wong.

“Everywhere in the world, we see societies becoming increasingly divided, and nations becoming more and more fragile. Economic growth or social transfers alone cannot guarantee that we succeed,” he added.

“These will shield us from external threats and the forces that threaten to pull us apart. Only then can we be confident that Singapore will endure.”