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("AMLA")). 

A wakaf consists of a donor (the wakif), who by declaration (sighah) donates his assets (mauquf) to Allah s.w.t. Legal ownership of all wakaf assets automatically vests in Majlis Ugama Islam Singapore (“MUIS”) (i.e. the Islamic Religious Council of Singapore), which has been held by the Courts to be the trustee-equivalent for wakafs.

Only the income generated from the wakaf asset(s) can be distributed to the beneficiaries (muquf’alaih). The capital (i.e., the original wakaf asset(s)) must be kept intact.

 More details about wakafs can be found on the MUIS' website.

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 mutawalli;

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 mutawalli and allowances to the individuals; (ii) purely religious purposes; (iii) charitable purposes; and (iv) pious and any other purposes.

Wakafs are managed by mutawallis. MUIS acts as the mutawalli of wakafs unless there are reasons for a private mutawalli to be better able to carry out the objectives of the wakaf.

Private mutawallis are screened and must be approved by MUIS before they are appointed. They have to comply with the AMLA, and the Administration of Muslim Law (Wakaf and Nazar Am) Rules. Amongst other things, mutawallis are required to keep proper accounts and records of all receipts, expenditure and investment of moneys belong to the wakaf, and are required to prepare audited financial statements after the close of each financial year. Failure to do so is an offence.

Private mutawallis also have to abide by the terms and conditions set out by MUIS in their letter of appointment. The terms include duties to safeguard the wakaf properties, and to keep regular and proper records including of the transactions that they undertake, and the specific beneficiaries who they make disbursements to.

Private mutawallis may be removed by MUIS at any time.

The police may require MUIS and private mutawallis 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.