With a controversial tax regulation by the Bureau of Internal Revenue looming over educational institutions, an education advocacy group is set to conduct a webinar on taxation to help schools get a better grasp of the issue.
The Philippine Educators Alliance for Community Empowerment (PEACE) Party-list will hold the “Education and Taxes: How to Properly Tax Educational Institutions” webinar on Wednesday, July 21. It is the fourth in a series of webinars hosted by the group about issues surrounding the education sector.
At least 865 private education institutions have closed down for the school year 2020-2021 due to low enrollment and inability to meet the requirements for effectively conducting distance learning, data from the Department of Education showed.
“With BIR’s Revenue Regulation (RR) No. 5-2021 threatening the continued existence of private schools that are already teetering on the brink because of the pandemic, we hope to provide our attendees with a clearer picture of what’s at stake,” PEACE Party-list President Marie Paz T. Abante said.
RR 5-2021 imposes a 25% corporate income tax on private schools. The said regulation raises private schools’ corporate income tax rate by 15 percent, despite the CREATE law slashing schools’ tax to just 1 percent in the next three years as a relief measure.
The policy has come under fire from various groups and lawmakers, with the Coordinating Council of Private Educational Associations (Cocopea) saying that unless rectified, the new regulation “may force financially distressed schools to close down.”
Tuition would also likely be increased, which could further burden parents who are already struggling to cope with the pandemic’s strain.
“Kasama ang PEACE Party-list sa mga nananawagan na huwag ituloy ang polisiyang ito. Nangangamba tayong madaragdagan pa ang 865 paaralang napilitang magsara nitong nakaraang taon,” Abante said.
She expressed hope that the said policy would be revoked soon to allow schools to focus on the re-opening of classes instead.
The policy has come under fire from various groups and lawmakers, with the Coordinating Council of Private Educational Associations (Cocopea) saying that unless rectified, the new regulation “may force financially distressed schools to close down.”
At least 865 private education institutions have closed down for the school year 2020-2021 due to low enrollment and inability to meet the requirements for effectively conducting distance learning, data from the Department of Education showed.
PEACE Party-list has so far held the” SY 2021-2022: What to Expect?” webinar, which tackled pressing issues surrounding the re-opening of classes; and “How To Start A School Ministry,” for churches that wish to start a school ministry, as well as for churches that have school ministries and would want to discuss how to better improve the operations and address unique challenges. It also recently conducted the “The ABCs of Homeschooling: Determine if Homeschooling is Right for You and Your Child.”
