How your company can make a difference — and benefit — by partnering with an Institution of a Public Character (IPC).
What is CVS?
Since its inception under the former Business & IPC Partnership Scheme (BIPS), the Corporate Volunteer Scheme (CVS) encourages businesses in Singapore to channel their resources into structured volunteer efforts. Eligible companies may claim 250% tax deduction on qualifying expenditure when their employees volunteer or are seconded to an IPC.
Who Qualifies?
- All businesses carrying on trade in Singapore: companies, sole‑proprietorships, partnerships, registered business trusts, and “bodies of persons” deemed as business entities.
- Excludes owners acting as volunteers (e.g., sole‑proprietor himself/herself) when they are also directors or partners.
- From 1 January 2024, the scope of volunteer activities expands to include:
- Virtual volunteering (online mentoring, tuition support)
- Activities outside IPC premises (e.g., refurbishment of rental flats) (charities.gov.sg)
What Counts as Qualifying Expenditure?
Qualifying costs include:
- Wages paid to employees while volunteering or seconded to an IPC
- Other expenses incurred because of the volunteering service (transport, materials, etc) (nvpc.org.sg)
Conditions:
- Not reimbursed by the IPC at any time
- Solely incurred because of the volunteering service
- Not personal, living or family expenses
- Not capital expenditure
From 2 December 2019, optional hourly rates were introduced: S$10/hour for general volunteering; S$20/hour for skills-based volunteering (where specialised expertise is applied). (nvpc.org.sg)
Caps & Deductions
- Businesses may claim up to 250% deduction on qualifying expenditure (i.e., original amount deductible at 100% + an additional 150% under Section 14Z).
- Cap of S$250,000 per business per Year of Assessment (YA). (nvpc.org.sg)
- Cap of S$100,000 per IPC per calendar year, effective from 1 Jan 2024 (previously S$50,000). (charities.gov.sg)
Examples:
- A $40,000 expenditure for IPC X in 2024 → claim S$40k × 250% = S$100k
- A $120,000 expenditure for IPC Y in 2024 → capped at S$100k → claim S$100k × 250% = S$250k
(Subject to the S$250k business cap)
How to Apply & Claim
- Develop a collaborative volunteer plan between your company and IPC: scope of service, duration, estimated expenditure. (nvpc.org.sg)
- After service, submit Form A with estimated numbers and Form B with actual expenditure to IRAS via myTax portal by end of January next YA. (nvpc.org.sg)
- Maintain documentation (wage records, invoices, project scope) in case of IRAS verification.
Summary Table: Corporate Volunteer Scheme
Feature | Details |
Tax Deduction | 250% of qualifying expenditure |
Business Cap | S$250,000 per business per YA |
IPC Cap | S$100,000 per IPC per calendar year (from 1 Jan 2024) |
Eligible Activities | Volunteering/secondments to IPCs; virtual and off‑premises activities (post‑1 Jan 2024) |
Qualifying Expenditure | Wages, transport, materials; must be incurred solely for volunteering service |
Claim Process | Pre‑agreement with IPC → Service → Forms A & B → Claim in tax return |
Ready to Make an Impact & Optimise Tax Savings?
Our team supports businesses in structuring their corporate volunteering programmes, reviewing qualifying expenditures, and seamless claim submission for CVS. Contact us today to align your corporate social responsibility strategy with tax‑efficient practice!