Corporate Volunteer Scheme: A Detailed Guide

The Corporate Volunteer Scheme (CVS) offers businesses in Singapore an opportunity to claim tax deductions for employee volunteering activities. At Apexia Corporate Advisory, we provide expert guidance to help businesses navigate the CVS framework and maximize their tax benefits while contributing to society.

What is the Corporate Volunteer Scheme?

The Corporate Volunteer Scheme (CVS) allows companies to claim a tax deduction on qualifying expenditure incurred for employee volunteering activities. The scheme is designed to encourage businesses to engage in community service and give back to society through volunteering.

Eligibility Criteria

To qualify for the CVS, companies must meet the following criteria:

• The volunteering activity must be conducted for an Institution of a Public Character (IPC) or its approved beneficiaries.
• The activity must involve employees providing their time, skills, or expertise.
• The company must incur qualifying expenditure directly related to the volunteering activity.

Qualifying Expenditures

The CVS allows businesses to claim tax deductions on the following types of expenditure:

• Wages of employees participating in the volunteering activity (capped at SGD 250,000 per company per YA).
• Direct costs incurred for the activity, such as transportation or materials used during volunteering.

Deduction Rates

Under the CVS, companies can claim a tax deduction of 250% on qualifying expenditure incurred for employee volunteering activities. The deduction is subject to an overall cap of SGD 50,000 per YA for each IPC.

Documentation Requirements

To support your CVS claim, you must maintain the following records:

• Details of the volunteering activity, including dates and purpose
• Proof of the IPC's approval of the activity
• Breakdown of qualifying expenditure incurred
• Employee timesheets and payroll records

How Apexia Corporate Advisory Can Help

At Apexia, we specialize in helping businesses leverage tax incentives like the Corporate Volunteer Scheme. Our services include:

• Assessing the eligibility of your volunteering activities for CVS
• Preparing and submitting accurate claims to IRAS
• Ensuring compliance with all documentation requirements
• Providing strategic advice on maximizing tax benefits through community service

With Apexia's expertise, you can make a meaningful impact on society while optimizing your tax position.