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Mar 20, 2010
RELIGIOUS GROUPS
Drawing the line on commercial deals
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WE REFER to the letter by Mr Lester Lam, 'Religious groups' commercial deals and tax question' (March 11).
A charity's main purpose is to provide public benefits through its charitable activities. Hence the incomes of registered charities are tax-exempt.
Some charities have chosen to engage in business activities to generate additional income. However, such business activities must be done in the best interest of the charity and not subject the charity's assets and resources to unacceptable risk.
Further, any business carried out by a charity under a separate legal entity does not enjoy tax-exempt status and is subject to normal corporate income tax.
With regard to Mr Lam's query on land use, Suntec City is an approved major commercial development which contains a large-scale international convention and exhibition centre.
The exclusive use of commercial developments for religious purposes would constitute a material change of use of such developments into places of worship.
Any such proposals would have to be submitted for the Urban Redevelopment Authority's (URA) consideration.
The URA has not received any change-of-use proposal from City Harvest Church pertaining to its use of Suntec City premises.
Carol Chua (Ms)
Deputy Director (Charities Unit)
Ministry of Community Development, Youth and Sports
Han Yong Hoe
Group Director (Development Control)
Urban Redevelopment Authority
Deanna Choo (Ms)
Director (Corporate Communications Branch)
Inland Revenue Authority of Singapore
RELIGIOUS GROUPS
Drawing the line on commercial deals
<!-- by line --><!-- end by line -->
<!-- end left side bar --><!-- story content : start -->
WE REFER to the letter by Mr Lester Lam, 'Religious groups' commercial deals and tax question' (March 11).
A charity's main purpose is to provide public benefits through its charitable activities. Hence the incomes of registered charities are tax-exempt.
Some charities have chosen to engage in business activities to generate additional income. However, such business activities must be done in the best interest of the charity and not subject the charity's assets and resources to unacceptable risk.
Further, any business carried out by a charity under a separate legal entity does not enjoy tax-exempt status and is subject to normal corporate income tax.
With regard to Mr Lam's query on land use, Suntec City is an approved major commercial development which contains a large-scale international convention and exhibition centre.
The exclusive use of commercial developments for religious purposes would constitute a material change of use of such developments into places of worship.
Any such proposals would have to be submitted for the Urban Redevelopment Authority's (URA) consideration.
The URA has not received any change-of-use proposal from City Harvest Church pertaining to its use of Suntec City premises.
Carol Chua (Ms)
Deputy Director (Charities Unit)
Ministry of Community Development, Youth and Sports
Han Yong Hoe
Group Director (Development Control)
Urban Redevelopment Authority
Deanna Choo (Ms)
Director (Corporate Communications Branch)
Inland Revenue Authority of Singapore
