Press Release
August 3, 2021

Senator Pia Cayetano hails suspension of BIR regulation on the tax rates of private schools; cites role of private schools as government's partner in educating our youth

"Let's help the private schools do their job as the government's partner in educating our children."

Thus said Senate Ways and Means Chair Senator Pia S. Cayetano, as she welcomed the Bureau of Internal Revenue's (BIR) Revenue Regulations No. 14-2021, which suspended the inclusion of "for-profit" private schools in the regime of regular income tax.

To recall, on June 30, the Senate Committee on Ways and Means already held a hearing on Senate Bill No. 2272 filed by Sen Sonny Angara, amending Section 27(B) of the National Internal Revenue Code (NIRC) on the preferential tax rates of private schools.

Senate Bill No. 2272 effectively clarifies that the preferential tax rate of 10% under the NIRC which was lowered by the Corporate Recovery and Tax Incentives for Enterprises or CREATE Act to 1% from July 1, 2020 until June 30, 2023 applies to all private schools - putting an end to the debates as to whether "for-profit" private schools were covered or not. The senators in attendance all expressed support.

Senator Cayetano committed to file a committee report based on the said bill. "Since tax bills must emanate from the House, we will await the transmittal of the House version. But I do believe it will be an easy bill to pass," she added.

"Private schools are the government's partners in education. This partnership is even more crucial today, as our nation deals with the COVID-19 pandemic, which has disrupted our educational system and the formal learning of our current generation of students," said Cayetano.

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