Nature of Cryptocurrencies
Can we make cryptocurrency donations in Singapore? Are they tax deductible?
You can likely make cryptocurrency donations in Singapore if you can find any registered charities and/or Institutions of a Public Character (IPCs) that accept them. However, such donations are unlikely to be tax deductible as they do not fit under any of IRAS' approved types of tax deductible donations. If the crypto is converted to cash before donation, it may be tax-deductible if it meets the following conditions.
Cash donations made to an approved Institution of a Public Character (IPC) or the Singapore Government for causes that benefit the local community are deductible donations.
Not all registered charities are approved IPCs. Donations made to a charity without approved IPC status are not tax-deductible.
Cash Donations with Benefits
Only outright cash donations that do not give material benefit to the donor are fully tax-deductible. When a donor receives a benefit in return for the donation made, tax deduction is granted only on the difference between the donation and the value of benefit. However, as a concession, certain donations made to IPCs on or after 1 May 2006 will be deemed as pure donations although there is benefit given in return for the donation. To qualify for the concessionary tax treatment, donations with benefits given in return will be treated as pure donations if the benefits are treated as having no commercial value.
Before 19 Mar 2021
Benefits are treated as having no commercial value if:
- the benefit is given in acknowledgement of the donation;
- the benefit has no resale value.
On or after 19 Mar 2021
IRAS has reviewed and updated the concessionary tax treatment after consultation with IPCs. To be treated as having no commercial value, the benefits must be:
- given out in connection with a fundraising activity; and
- fall within the list of benefits specified in paragraph 6.4 of our e-Tax Guide for Donations made on or after 19 March 2021.
New! For details on the concessionary tax treatment and a list of common benefits given in return for donations and their tax treatment, please refer to the IRAS e-Tax Guide "Tax Treatment on Donations with Benefits (Donations made before 19 March 2021)" (PDF, 83KB) and "Tax Treatment on Donations with Benefits (Donations made on or after 19 March 2021)" (PDF, 215KB).
This donation scheme applies to both corporate and individual donors.