26 Jul 2013

In response to a letter “Are telco fees for charity shows really necessary” (TODAY, 23 July), the tax authority explained that the goods and services tax (GST) is levied on all local telephone charges. The fee imposed by the telco for its dial-in donation service is a charge for services rendered by a GST-registered business. Hence it is subject to GST. This is, however, independent of the donation component.

The IRAS’s full reply can be found on its website.

Source: Inland Revenue Authority of Singapore