The Business and IPC Partnership Scheme (BIPS) is a scheme that allows 250% corporate tax deduction on qualifying expenses when a business’ or company’s employees volunteer, provide professional services to recognised Institutions of Public Character (IPCs)
The employee of a business or company in Singapore can qualify for the BIPS scheme provided:
- he or she is not the owner, sole proprietor, partner or shareholder who holds directorial positions in the company;
- the company is not an investment holding company;
- he or she incurs expenses from voluntary services provided the IPCs during working hours, on the IPCs premise which is not paid for by the IPC, not a capital expenditure and not a personal expense.
The qualifying expenditure is capped at SGD$250,000 per business or company for each Year of Assessment and at SGD$50,000 per individual IPC for each calendar year. The qualifying period is from 1st July 2016 to 31st December 2021.
When in doubt, seek legal advice or consult an experienced ACRA Filing Agent.
The editorial team at Singapore Secretary Services
For more useful articles and videos, visit the Singapore Secretary Services resource page.
If you would like to submit a question or would like us to do an article on certain topics, please email us at [email protected].
Other related posts: