Boost Your Corporate Giving and Tax Benefits with Singapore’s Corporate Volunteer Scheme (CVS)
Businesses today are increasingly seeking ways to enhance their corporate social responsibility (CSR) while maximising tax savings. One powerful tool in Singapore is the Corporate Volunteer Scheme (CVS), which rewards companies that encourage employee volunteering with enhanced tax deductions. Accounting experts like WLP can guide businesses to fully leverage this opportunity.
Understanding the Corporate Volunteer Scheme (CVS)
The Corporate Volunteer Scheme (CVS), formerly known as the Business & IPC Partnership Scheme (BIPS), incentivises corporate volunteerism by providing tax relief for qualifying activities. Under CVS, businesses that allow employees to volunteer for approved Institutions of a Public Character (IPCs) can claim a 250% tax deduction on eligible volunteer-related expenses. This scheme allows companies to support the community while reducing taxable income.
Who Can Participate?
Almost any business operating in Singapore can participate, including:
- Private companies
- Partnerships
- Sole proprietorships
- Business trusts
However, certain roles, such as sole proprietors volunteering in their own business capacity, are excluded.
Eligible Expenses
Businesses can claim deductions for:
- Salaries or wages paid to employees during volunteer activities
- Out-of-pocket expenses related to volunteering, including transport or materials
Expenses must be directly linked to the volunteering work, not reimbursed by the IPC, and cannot be personal or capital in nature. Recent updates also allow virtual volunteering and offsite volunteer activities to qualify, making it easier for companies to participate.
How Much Can Be Claimed?
Under CVS:
- Eligible expenses are deductible at 250% of their actual value
- Each business can claim up to S$250,000 per year
- Each IPC can receive a maximum of S$100,000 in qualifying expenses per calendar year
This enhanced deduction allows companies to meaningfully contribute to community projects while significantly lowering their tax liability.
Steps to Maximise CVS Benefits
To ensure a smooth claim process, companies should:
- Coordinate with the IPC on the scope and duration of volunteering projects beforehand
- Estimate volunteer-related expenses and obtain IPC approval prior to service
- Keep detailed records of wages, hours volunteered, and related costs for tax filing
- Submit the required forms to IRAS on time for claim approval
Accurate documentation is critical for compliance and maximising deductions.
Why CVS Matters for Businesses
CVS offers more than just tax relief—it strengthens your CSR profile, improves employee engagement, and enhances brand reputation. By investing in volunteer programs, companies demonstrate genuine social impact while benefiting financially.
Professional guidance can make a big difference. WLP provides tailored advice on structuring volunteer programs, tracking expenses, and ensuring your CVS claims are fully compliant, helping businesses optimise both impact and tax savings.
Conclusion
The Corporate Volunteer Scheme is a win-win: it allows businesses in Singapore to give back to society while enjoying significant tax incentives. By planning strategically and seeking professional advice from trusted partners like WLP, companies can maximise both social impact and financial benefits.