Business and IPC Partnership Scheme (BIPS) Singapore (2026): 250% Tax Deduction for Corporate Volunteering

Corporate social responsibility and tax efficiency are not usually mentioned in the same breath, but in Singapore they meet in one specific incentive: the Business and IPC Partnership Scheme (BIPS), now delivered as the Corporate Volunteer Scheme (CVS). It gives a business a 250% tax deduction on qualifying expenditure when its employees volunteer or provide services to an approved charity. In other words, a company can do genuine good in the community and reduce its taxable income by more than the cost of doing so. This 2026 guide explains how the scheme works, what qualifies, the caps, and how to claim.

Raffles Corporate Services works with a panel of experienced Singapore law firms who offer cost-effective and efficient legal service and advice. This article is general information only and is not legal advice.

It is written for business owners, HR leaders and finance managers who want their staff volunteering to count for something on the tax return as well as in the community. Used well, the scheme turns a cost centre into a modest tax saving while supporting causes your people care about.

What is BIPS / the Corporate Volunteer Scheme?

BIPS was introduced in 2016 to encourage corporate volunteerism. Under it, a business enjoys a 250% tax deduction on qualifying expenditure incurred when it sends employees to volunteer and provide services, including secondments, to an Institution of a Public Character (IPC). The scheme has since been refreshed and is now administered as the Corporate Volunteer Scheme, with the same headline 250% deduction and an expanded scope.

The 250% figure is what makes the scheme attractive. For every S$1,000 of qualifying expenditure, a business may deduct S$2,500 against its taxable income, so the deduction exceeds the actual outlay. At the prevailing 17% corporate tax rate, that turns a S$1,000 cost into roughly S$425 of tax saved, materially softening the cost of a volunteering programme.

What expenditure qualifies?

The deduction covers the costs a business incurs when its employees provide services to an IPC. In broad terms, qualifying expenditure includes the wages of employees for the time they spend volunteering with the IPC, and certain related incidental expenses. The point is that the business is effectively contributing its people’s time and skills, and the scheme recognises the value of that time.

Since 1 January 2024, the scheme’s scope has been enhanced. Qualifying activities now expressly include services provided virtually or outside the IPC’s premises, reflecting how volunteering actually happens today, not only on-site work. This makes it far easier for companies with hybrid or remote teams to participate.

The caps you need to know

The 250% deduction is generous, so it comes with caps to keep it targeted.

Per-business cap

Qualifying expenditure is subject to a cap of S$250,000 per business per Year of Assessment (YA). That is the ceiling on the expenditure that can attract the enhanced deduction in any one YA.

Per-IPC cap

There is also a cap on qualifying expenditure per IPC. From 1 January 2024, this per-IPC cap was raised from S$50,000 to S$100,000 per calendar year. This encourages businesses to spread their support, while allowing a deeper partnership with any single charity than before.

Expenditure above these caps is still deductible in the normal way as a business expense, but only the amount within the caps enjoys the enhanced 250% rate.

The scheme has been extended

The incentive has been repeatedly extended, signalling the Government’s continued support for corporate volunteering. Qualifying expenditure incurred up to 31 December 2026 attracts the 250% deduction under the current settings, and, as announced in Budget 2026, the Corporate Volunteer Scheme has been extended to cover qualifying expenditure incurred from 1 January 2027 to 31 December 2029. In practical terms, businesses can plan multi-year volunteering programmes with confidence that the tax treatment will remain available.

How to claim

Claiming the deduction is a matter of good record-keeping and correct reporting.

The IPC must be a valid IPC at the time the services are provided, and the volunteering arrangement should be agreed with the IPC, which needs to confirm the services. The business records the qualifying expenditure, applies the caps, and claims the 250% deduction in its corporate income tax return. Because this is an enhanced deduction rather than an ordinary expense, it should be clearly identified and supported, so keep documentation of the hours volunteered, the employees involved, the IPC’s confirmation, and the computation of qualifying expenditure. Ordinary business expense principles still apply to anything outside the scheme.

Why use the scheme?

Beyond the tax saving, the scheme aligns three things that usually pull in different directions: staff engagement, community impact and cost. Employees value the chance to volunteer on company time; charities gain skilled help they could not otherwise afford; and the business recovers part of the cost through the enhanced deduction. It also sits comfortably alongside other Singapore incentives that reward positive corporate behaviour, such as the Enterprise Innovation Scheme for innovation activities. For a company building an authentic CSR programme, BIPS is a rare case where doing the right thing and managing tax efficiently point in the same direction.

Frequently asked questions

Does the charity have to be an IPC?

Yes. The enhanced deduction applies to services provided to an approved Institution of a Public Character. Not every registered charity is an IPC, so check the IPC’s status before starting.

Can we claim for virtual volunteering?

Yes. Since 1 January 2024, qualifying activities include services provided virtually or outside the IPC’s premises, not only on-site work.

Is this the same as a cash donation deduction?

No. A qualifying cash donation to an IPC has its own 250% deduction. BIPS/CVS is about the value of employees’ time and services, and has its own caps and conditions.

What happens if we exceed the caps?

Expenditure beyond the per-business or per-IPC caps does not get the 250% rate, but it may still be deductible as an ordinary business expense under the normal rules.

How we can help

The mechanics of BIPS, valid IPC status, qualifying expenditure, the per-business and per-IPC caps, and the correct reporting in the tax return, are simple once understood but easy to misstate. Raffles Corporate Services helps companies structure a volunteering programme that qualifies, track and compute the qualifying expenditure, apply the caps correctly, and claim the enhanced deduction cleanly. If you want your staff’s community work to also work for your tax position, we would be glad to help.

This article is for general information only and does not constitute tax advice. Scheme conditions and caps change; confirm the current position with IRAS or a qualified adviser before acting. See the IRAS guidance on the Corporate Volunteer Scheme.

— The Editorial Team, Raffles Corporate Services