Tax Relief

Faculties are calling for the tax relief regulation to be handed instantly

PHILSTAR

PRIVATE SCHOOLS said they hope that a bill will be signed this month or September that will grant them eligibility to a lower tax rate to divert the dispute with the Bureau of Internal Revenue (BIR) and allow them to rely on theirs Focus on core teaching task.

“We hope that the bill can come into force before the serious start of the new school year in August and September so that our schools can fully concentrate on dealing with the learning crisis and COVID (Coronavirus disease) in our country. “Currently struggling,” said Joseph Noel M. Estrada, managing director of the Coordinating Council of Private Educational Associations (COCOPEA), in a statement on Wednesday.

Mr. Estrada also urged private tutors to join COCOPEA and appeal to Congress to swiftly pass the law “to give our troubled schools a lifeline during this pandemic, to ensure continuity of learning for our students, jobs of our teachers and “to secure staff and livelihoods for the many small businesses that depend on our schools.

The House of Representatives Committee on Means and Ways passed the bill in second reading on Monday.

House Bill 9913 amends Section 27 (B) of the 1997 National Internal Revenue Code to specifically allow all private educational institutions and nonprofit hospitals to enjoy a 10% preferential tax rate for a limited period of time to help them recover from the economic crisis .

Under the bill, the private school tax rate will be further reduced to 1% from July 1, 2020 through June 30, 2023, as approved by the Republic Act 11534 or the Corporate Recovery and Tax Incentives for Enterprises (CREATE) law.

The BIR took the view that tax breaks only apply to non-profit institutions, so that for-profit schools have to pay the regular corporate income tax rate of currently 25%.

In the meantime, the BIR has withdrawn its interpretation of the tax treatment of private schools. – Bianca Angelica D. Añago

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