Wakafs

Disclaimer: The material on this webpage does not constitute legal advice. The Government is not assuming, or taking on, any responsibility to any person who relies on the material stated on this website. If you wish to obtain legal advice on trusts and trust-like arrangements in Singapore, please engage a lawyer.

1. Basic Features of Wakafs

Under Singapore law, a wakaf is a permanent dedication by a Muslim of any movable or immovable property for any purpose recognised by the Muslim law as pious, religious or charitable (section 2 of the Administration of Muslim Law Act 1966). 

A wakaf consists of a donor (the wakif), who by declaration (sighah) donates his assets (mauquf) to Allah s.w.t. A trustee (mutawalli) will be appointed to manage the asset. The trustee is obliged to keep the capital (i.e., the original asset(s)) intact. Only the income generated from the asset(s) is distributed to the beneficiaries (muquf’alaih).

 More details about wakafs can be found on the website of the Majlis Ugama Islam Singapura (“MUIS”) (i.e. the Islamic Religious Council of Singapore).

2. Regulation of Wakafs

All wakafs must be registered with MUIS, which is also required to maintain a register of wakafs. For the purposes of registration, MUIS will collect the following particulars amongst others:

1.     Full particulars, including contact information, of the trustees;

2.     A list of beneficiaries (or class of beneficiaries) and objects of the wakaf;

3.     A description of the wakaf properties sufficient for the identification of the properties;

4.     The gross annual income from the wakaf properties;

5.     The amount of rates and taxes annually payable in respect of the wakaf properties;

6.     An estimate of the expenses annually incurred in the realisation to the income of the wakaf properties; and

7.     The amount set apart under the wakaf for — (i) the salary of the trustee and allowances to the individuals; (ii) purely religious purposes; (iii) charitable purposes; and (iv) pious and any other purposes.

MUIS is the custodian of all wakafs in Singapore and has extensive powers over each wakaf. For instance, prior approval in writing from MUIS must first be obtained before a person may be appointed as a trustee under an instrument or declaration creating a wakaf. In the process, MUIS may impose terms and conditions on the trustees concerning their appointment.

 Further, the trustee must keep proper accounts and records of its transactions and affairs and prepare financial statements in respect of the wakaf after the close of each financial year. Such financial statements must be submitted to MUIS.

The police may require MUIS to produce information regarding the wakaf pursuant to its powers under the Criminal Procedure Code 2010 (“CPC”), where it considers the information to be necessary for desirable for any investigation, inquiry, trial or other proceeding under the CPC.

3. Filing of Tax Returns

Wakafs vested in MUIS are exempted from income tax under Section 13(1)(e) of the Income Tax Act 1947.