Philippine Officials Back Tax Cuts For Education

by Mary Swire, Tax-News.com, Hong Kong

11 December 2008

Philippine schools housing Special Education (SPED) centres for children with disabilities or special learning needs, will be given greater tax incentives under a new proposal from the country's Department of Finance (DoF).

Announcing the news, Finance Undersecretary Gil S. Beltran explained that the proposals have been designed to encourage all schools in the country which don't already have one to build SPED centres, with the hope that bigger school divisions will eventually house up to three SPED centres.

Beltran went on to explain that the scheme would work by allowing large tax deductions for operating costs to be removed from the SPED's tax bills. Additionally, tax incentives will be given to individuals who allow a personal property to be turned into a SPED.

Under current law in the Philippines, the National Internal Revenue Code states that government educational institutions and non-profit educational institutions are both exempt from having to pay taxes.

Beltran explained in the Finance Department's position paper:

“This department endorses the proposed tax provisions of the subject House Bill. These are consistent with the existing provisions of the Philippine Constitution and the Tax Code. The proposal will also strengthen the government’s programs in support of SPED in the country."

In addition to the tax deductions, the DoF will also look at ways of assisting with the costs associated with building the SPEDs, and will also provide staff with technological and scientific assistance.

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