Singapore has spent a decade attracting the world’s family offices with attractive fund tax exemptions. The next chapter is philanthropy. The Philanthropy Tax Incentive Scheme (PTIS) rewards family offices that give back through Singapore, offering a tax deduction on overseas donations channelled through approved local partners. For families who want their wealth to do good beyond Singapore’s shores, it turns the country into both a wealth-management base and a philanthropy hub.
This guide explains what the PTIS is, who qualifies, how the 100% deduction and its cap work, what a Qualifying Local Intermediary is, and how the scheme sits within the wider family office framework. It is general information and not tax advice, so speak to a professional before you structure any giving.
What Is the Philanthropy Tax Incentive Scheme?
The PTIS was introduced to strengthen Singapore’s position as a centre for philanthropy in Asia and to encourage family offices operating here to carry out their giving from Singapore. In simple terms, it allows a qualifying family office donor to claim a tax deduction on donations made to overseas causes, provided the money is routed through an approved Singapore intermediary rather than sent directly abroad.
The scheme is administered by the Monetary Authority of Singapore (MAS), the same regulator that oversees the family office fund tax incentives. Once granted, PTIS approval runs for a five-year period, and the scheme currently carries a sunset date of 31 December 2028.
The 100% Deduction and the 40% Cap
The headline benefit is a 100% tax deduction on Eligible Overseas Donations. The deduction is capped at 40% of the donor’s statutory income for the year of assessment. In practice this means a family office can shelter a meaningful slice of its taxable income by giving overseas, while the cap keeps the relief proportionate to income.
Because the deduction is set against statutory income, families should model it alongside the tax position of the underlying fund. Our guide to Singapore corporate tax explains how statutory income is arrived at before reliefs are applied.
PTIS at a Glance
| Feature | Detail |
|---|---|
| Benefit | 100% tax deduction on eligible overseas donations |
| Cap | 40% of the donor’s statutory income |
| Who qualifies | Single family offices linked to a 13O, 13OA or 13U fund |
| Route for donations | Through a Qualifying Local Intermediary |
| Approval period | 5 years |
| Sunset date | 31 December 2028 |
Who Qualifies for the PTIS?
The scheme is aimed at single family office (SFO) applicants that manage a fund or funds under Section 13O, Section 13OA, or Section 13U of the Income Tax Act 1947. In other words, the PTIS is designed to layer on top of the existing family office tax incentives rather than to stand alone. If your family office has not yet secured one of those fund exemptions, that is the first building block. Our guide comparing Section 13O and Section 13U sets out the differences, and our complete guide to setting up a family office walks through the wider process.
What Counts as an Eligible Overseas Donation?
An Eligible Overseas Donation is a donation towards a charitable, benevolent, or philanthropic purpose whose main objective is to benefit persons, events, or objects outside Singapore. This is the crucial difference from ordinary tax-deductible donations in Singapore, which generally require the recipient to be a local Institution of a Public Character. The PTIS deliberately extends relief to giving that benefits causes abroad, reflecting the international outlook of many family offices based here.
Qualifying Local Intermediaries (QLIs)
To keep the money within a regulated Singapore channel, overseas donations must flow through a Qualifying Local Intermediary. QLIs include selected registered and exempt charities that hold a valid Fundraising for Foreign Charitable Purposes permit, charitable institutions and not-for-profit organisations established by financial institutions in Singapore, and selected grantmakers under the grantmaker scheme run by the Ministry of Culture, Community and Youth. Giving through a QLI ensures proper governance, record-keeping, and traceability, which in turn supports the donor’s claim for the deduction.
How to Apply
Application is made to MAS, usually as part of, or shortly after, the family office’s fund tax incentive application. The family office sets out its philanthropic plans, confirms the qualifying fund, and commits to giving through QLIs. Once approved, the PTIS runs for five years, after which the family can seek renewal if the scheme remains available. Because approval, the fund exemption, and the operational set-up are intertwined, most families handle the PTIS as one workstream within a broader family office project. See our single family office setup guide for the documents involved.
Frequently Asked Questions
Can I donate directly to an overseas charity and still claim the deduction?
No. To qualify for the PTIS deduction, eligible overseas donations must be channelled through a Qualifying Local Intermediary in Singapore.
Does the family office need an existing tax incentive?
Yes. The PTIS is for single family offices managing a fund under Section 13O, 13OA, or 13U. The fund incentive comes first.
How long does PTIS approval last?
Approval is granted for a five-year period, and the scheme currently has a sunset date of 31 December 2028.
Planning to set up a family office in Singapore and build a giving strategy around it? Raffles Corporate Services can help with the structuring, incorporation, and the groundwork for your MAS applications.
— The Editorial Team, Raffles Corporate Services