Employers who Have Participated in the Business and Institutions of a Public Character Scheme
Ministry of FinanceSpeakers
Summary
This question concerns the Business and Institutions of a Public Character Scheme (BIPS) participation statistics and the potential for individual tax incentives for volunteering. Ms Anthea Ong asked about total hours volunteered under BIPS and whether a similar rebate scheme could be introduced to encourage individual volunteerism. Minister for Finance Heng Swee Keat reported that 48 businesses and 3,200 employees utilized the 250% tax deduction to contribute 17,000 volunteering hours from July 2016 to December 2017. He stated that BIPS claims will be simplified using fixed man-hour rates, while individual volunteering is currently supported through SG Cares training, skills-matching, and grants. Minister for Finance Heng Swee Keat concluded that the government will continue reviewing strategies and using awards to inspire individuals to contribute to a caring society.
Transcript
41 Ms Anthea Ong asked the Minister for Finance (a) how many employers have participated in the Business and Institutions of a Public Character Scheme and what is the total number of hours volunteered by employees based on rebates claimed to date; and (b) whether there is a plan for an "Individual and Institutions of a Public Character Scheme" to encourage more volunteerism by individuals beyond the tax rebate for donations.
Mr Heng Swee Keat: The Business and Institution of a Public Character (IPC) Partnership Scheme (BIPS) was introduced in July 2016 to encourage businesses to support their employees to offer their expertise and skills to IPCs. Through BIPS, businesses can enjoy a 250% tax deduction on basic wages and related expenses incurred when their employees volunteer or provide services to IPCs.
Between July 2016 and December 2017, about 3,200 employees from 48 businesses contributed about 17,000 volunteering hours through BIPS projects. To encourage more businesses to come on board, we will continue to promote the scheme and simplify the claims process. For example, we will provide an option for businesses to claim tax deductions on wages based on a fixed man-hour rate. This will provide greater flexibility to businesses who may find it tedious to compute the pro-rated wages of employees who had volunteered.
Ms Anthea Ong asked if similar tax deductions could be given to individuals to encourage volunteerism. The design of the scheme facilitates IPCs with specific needs to benefit from the expertise of staff in diverse businesses, including consultancy, legal and accounting services, courier services.
We continue to encourage individuals to volunteer and contribute out of passion and heart for the community.
Under the SG Cares movement, the Ministry of Culture, Community and Youth, together with its partner agencies, support volunteerism through various ways. These include volunteer training, and matching of skills and passions to areas of need, to create a more fulfilling and engaging experience for volunteers. Individuals and corporates with outstanding contributions to the community are also recognised through awards, to inspire more to join them. Grants, such as Our Singapore Fund, are available to support ground-up projects which meet social or community needs.
We will continue to review the effectiveness of our strategies and explore further ways of encouraging volunteerism, to build a caring society where the community steps forward to support one another.