By Ernie Reyes
MANILA — Senator Sonny Angara today lauded the enactment of the law clarifying the preferential tax treatment granted to private schools, saying this will save many struggling schools from closing down permanently.
Republic Act 11635 amends Section 27(B) of the National Internal Revenue Code of 1997 and was signed on December 10, 2021, by President Rodrigo Duterte.
“This law effectively cuts the noose that was tied around the necks of our private schools. It is a recognition of the critical role that our private sector educators play as partners of the government in teaching our youth,” Angara said.
Under the law, a “proprietary educational institution” means any private school maintained and administered by private individuals or groups with an issued permit to operate from the Department of Education or Commission on Higher Education or the Technical Education and Skills Development Authority.
Angara, the principal author and a co-sponsor of the law, explained that the amendment to that particular section of the NIRC removes any confusion regarding the application of the preferential tax rate on proprietary educational institutions, as well as nonprofit hospitals. (ai/mtvn)