Current Donors do not receive tax deductions for overseas cash donations unless they qualify for the Philanthropy Tax Incentive Scheme for Family Offices (PTIS)[1].
Proposed OHAS will be piloted for 4 years from 1 January 2025 to 31 December 2028.
Under OHAS, individual and corporate donors will be provided with 100% tax deduction for qualifying overseas cash donations made through a designated charity and towards a fundraiser for emergency humanitarian assistance with a valid Fund-Raising for Foreign Charitable Purpose (FRFCP) permit from the Commissioner of Charities (COC).
Qualifying overseas cash donations must meet the following 2 conditions to be eligible for tax deductions:
Tax deductions under OHAS will be capped at 40% of the donor’s statutory income. For donors who also receive tax deductions under the PTIS, tax deductions under both OHAS and PTIS will be jointly capped at 40% of the donor’s statutory income.
Any unutilised tax deductions under the OHAS cannot be carried forward to offset the donor’s income for any subsequent Year of Assessment (YA) and cannot be transferred to another company of the same group under the Group Relief System for any YA.
Inland Revenue Authority of Singapore (IRAS) will provide further details by 30 June 2024.
In 2019, the Government announced that CPF contribution rates would be gradually raised over the next decade or so for Singaporean and Permanent Resident workers aged above 55 to 70 (see Table 1). Once the increases have been fully implemented, workers aged above 55 to 60 will have the same CPF contribution rates as younger workers.
Table 1: Current and Target CPF Contribution Rates (Employer + Employee) by Age Band
| Age Band | 2016-2021 | Current CPF Contribution Rates (As of 1 January 2023) | By ~2030 | | --- | --- | --- | --- | | 55 and below | 37.0% | No Change | No Change | | Above 55 to 60 | 26.0% | 31.0% | 37.0% | | Above 60 to 65 | 16.5% | 22.0% | 26.0% | | Above 65 to 70 | 12.5% | 16.5% | 16.5% | | Above 70 | 12.5% | No Change | No Change |
Note: The timeline is subject to change, depending on prevailing economic conditions.
The Government has implemented the increase in senior workers’ CPF contribution rates for workers aged above 55 to 70 each year since 1 January 2022. The next increase for workers aged above 55 to 65 will take place on 1 January 2025, as shown in Table 2. The increase in contribution rates will be fully allocated to the CPF Special Account or Retirement Account.
Additionally, the Government will provide employers with a one-year CPF Transition Offset equivalent to half of the 2025 increase in employer CPF contribution rates for every Singaporean and Permanent Resident worker they employ aged above 55 to 65 (see Table 2).
Table 2: CPF Contribution Rates for Senior Workers from 1 January 2025
| CPF Contribution Rates from 1 January 2025 | CPF Contribution Rates from 1 January 2025 | CPF Contribution Rates from 1 January 2025 | ||
|---|---|---|---|---|
| Age Band | Total | Employer | Employee | CPF Transition Offset for 2025 |
| 55 and below | No Change | No Change | No Change | No Change |
| Above 55 to 60 | 32.5% | |||
| (+1.5%-pt) | 15.5% | |||
| (+0.5%-pt) | 17.0% | |||
| (+1%-pt) | 0.25%-pt | |||
| Above 60 to 65 | 23.5% | |||
| (+1.5%-pt) | 12.0% | |||
| (+0.5%-pt) | 11.5% | |||
| (+1%-pt) | 0.25%-pt | |||
| Above 65 to 70 | No Change (Target contribution rates were reached in 2024) | No Change (Target contribution rates were reached in 2024) | No Change (Target contribution rates were reached in 2024) | No Change (Target contribution rates were reached in 2024) |
| Above 70 | No Change | No Change | No Change | No Change |
Notes:
| Disclaimer
| This online newsletter and website has been prepared by Crowe Horwath First Trust (”Crowe Singapore”) and should be used as a general guide only. No reader should act solely upon any information found on this website. We recommend that professional advice be sought before taking action on specific issues and making significant business decisions. Crowe Singapore expressly disclaims all and any liability to any person in respect of anything, and of the consequences of anything, done or omitted to be done by any such person in reliance, whether wholly or partially, upon the whole or any part of the contents of this website. While every effort has been made to ensure the accuracy of the information contained herein, Crowe Singapore shall not be responsible whatsoever for any errors or omissions in it. |
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