Issue of Tax Deduction Receipts
Some IPCs have been authorised to issue tax deduction receipts. Upon receiving the tax deductible donations, the IPCs should issue tax deduction receipts to the donors.
A tax deduction receipt should contain or incorporate the following information with effect from 1 Jan 2011:
(a) This receipt is for your retention. This donation is tax deductible and the deduction will be automatically included in your tax assessment as you have provided your Tax Reference number (e.g. NRIC/FIN/UEN). You do not need to claim the deduction in your tax form.
(b) State the name of the Sector Administrator, where applicable;
(c) Be serially numbered; and
(d) Be signed by either the treasurer of the IPC or by any person to whom such function is delegated by its governing board members.
IPCs can also use the electronic medium provided by the Inland Revenue Authority of Singapore (IRAS) to issue the tax deduction receipts.
IPCs have to maintain a record showing the particulars of every tax deductible donation received. The record should include the following items:
(a) the receipt number (in numerical sequence);
(b) the name of the donor;
(c) the identification number, or corporate or business registration number, of the donor;
(d) the date on which the donation was received;
(e) the type of donation received;
(f) the amount or value of the donation received; and
(g) any terms and conditions under which the donation was made.
These records must be kept for at least 5 years from the end of the year of assessment relating to the year in which the donation was received.
IPCs are required to change auditors at least once every 5 years, whether to another auditor from the same auditing firm or company or to another auditor from a different auditing firm or company.
IPCs should seek the approval from the respective Sector Administrator on the auditors.
Click here to download a copy of the auditor’s declaration.
Submission of Annual Report and Statement of Accounts
IPCs are required to submit the following documents within 6 months from the end of the financial year to the respective Sector Administrator via the Charity Portal using the <annual report><submit> and <ipc status><update> functions:
(a) the audited financial statements; click here to view the Charities Accounting Standard (CAS). An accounting template and explanatory notes is also available to assist charities in the preparation of your accounts according to the CAS.
(b) the auditor’s report on the financial statements;
(c) the auditor’s report on the use of donation moneys and whether such use is in accordance with the objectives of the IPC;
(d) the IPC’s fund-raising and expenditure plans for the following financial year; and
(e) the annual report.
In addition the following documents are also required to be submitted to the relevant authorities.
Posting of IPC’s Information Online
All IPCs are required to post their financial and non-financial information online on the Charity Portal.
Addition Requirements as Large IPCs
Large IPCs will have to comply with additional rules relating to governing board members and auditors.
A large IPC means an IPC with gross annual receipts in each financial year of not less than $10 million in the 2 financial years immediately preceding the current financial year of the charity.
These additional rules include:
- Financial statements must comply with the Financial Reporting Standards;
- Having at least 10 governing board members; and
- Posting of annual reports and audited financial statements online i.e. on its own Internet website or other website as approved by the respective Sector Administrator.