SPORTS AS A CHARITY

SPORTS AS A CHARITY:

(Update): 17.

Mr Zainudin Nordin asked the Minister for Community Development, Youth and Sports with the recognition of sports as a charity (a) how has this classification benefited the community in general and the sports fraternity in particular; (b) whether he will provide an update on the number of applications by organisations and National Sports Associations for tax exemption for monies collected for sports; and (c) whether the procedure to obtain tax exemptions is onerous for them.

Dr Vivian Balakrishnan: Mr Speaker, Sir, the classification of sports as a charitable

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cause recognises the value of sports to our society, particularly in promoting community bonding and for developing healthy, resilient and rugged individuals. Registered charities enjoy income tax exemption and property tax exemption for premises which are used exclusively for charitable purposes. These tax incentives will enable these sports groups to set aside more financial resources to carry out their programmes and activities.

In order to qualify for registration as a charity, the National Sports Associations (NSAs) need to include as its main objective the promotion of the sport so as to advance the health of all participants. The sport must require physical skill and exertion.

To facilitate the registration process for sports groups, my Ministry and the Singapore Sports Council have developed a simple governing instrument template for adoption by the NSAs in order for them to use if they wish to obtain charity status. The registration process has been rolled out. So far, I believe that the Singapore Badminton Association has amended its governing instrument and is currently seeking approval from the Registrar of Societies before applying for charity registration.

At present, all charities enjoy income tax exemption if they expend 80% of their annual receipts on local charitable causes within two years. However, following the announcement made at Budget 2007, charities will enjoy automatic income tax exemption, from Year of Assessment 2008 even if they do not spend 80% of their annual receipts within two years. This will facilitate better fiscal management and greater flexibility.

3.00 pm

Mr Speaker: Order. End of Question time.

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[ Pursuant to Standing Order No. 22(3), Written Answer to Question No. 20 on the Order Paper is reproduced in the Appendix*. Question Nos. 18 and 19 have been postponed to the sitting of Parliament on 19 September 2007. ]

*Cols. 1831-1832.

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