Rep. Francisco “Kiko” Benitez (Negros Occidental, 3rd District) said Friday, January 7, that Republic Act 11635 will enable all private schools to avail of a 1 percent income tax rate until June 2023.
President Rodrigo Duterte signed RA 11635 reducing the preferential tax rate of 10 percent to 1 percent imposed on proprietary educational institutions.
Benitez, principal author of the measure in the Lower House, said that RA No. 11635 provides a clearer tax regime for private schools.
The new law will reduce the operational costs of private schools during these challenging times, and hopefully will provide fiscal space for new investments to transition to digital learning, he said.
The Coordinating Councilor of Private Educational Associations (COCOPEA) thanked the president and the lawmakers for the enactment of the law.
For many schools, the enactment of RA 11635, gives them the needed boost for sustainability in the school years ahead, it said.
“The enactment of RA 11635 extends the lifeline to our struggling schools during this pandemic, to ensure the continuity of learning for our students, to secure the jobs of our teachers and personnel, and provide livelihood for many small businesses who are dependent on schools”, the COCOPEA said.*