RR No. 13-2025: Consolidated provisions to simplify and streamline the procedures and requirements relative to the availment of the tax exemptions and incentives granted to the participating private entities under RA No. 8525 (Adopt-a-School Act of 1998), RA No. 12063 (Enterprise-Based Education and Training (EBET) Framework Act), and the Tax Code

Summary

RR No. 13-2025 consolidates provisions to simplify the procedures for tax exemptions and incentives of private entities under RA No. 8525 (Adopt-a-School Act of 1998), RA No. 12063 (EBET Framework Act) and the Tax Code.

Key points

1. Additional deductions for enterprises. Registered export and domestic market enterprises may deduct an additional fifty percent (50%) of labor expense, excluding managerial, administrative, indirect labor and support costs. They may also deduct an additional one hundred percent (100%) of training expense for trainings approved by the Strategic Investment Priority Plan given to Filipino employees directly engaged in production.
2. Adopt-a-School. An Adopting Private Entity may deduct its contributions under Section 34(H) of the Tax Code plus an additional fifty percent (50%) of the contribution, and is exempt from Donor’s Tax under Section 101(A)(2) and (B)(2). The deduction must be taken in the year the expense is paid or incurred, with substantiation.
3. EBET Program enterprises. They get an additional deduction of 50% of actual training expenses from effectivity of R.A. No. 12063 up to December 31, 2027, and seventy-five percent (75%) starting January 1, 2028. The deduction cannot exceed five percent (5%) of total direct labor expenses or ₱25,000,000.00 a year, whichever is lower, with TESDA certification.
4. Donations to TVIs. Donations to a Technical-Vocational Institution implementing theoretical instruction for EBET Programs are exempt from Donor’s Tax and deductible from the donor’s gross income. TVIs need not be accredited but must secure TESDA certification.
5. Documents and valuation. Claimants attach certifications (DepEd, CHED or TESDA), a Sworn Declaration, and for donations a notarized Deed of Donation and Acceptance to their returns, and keep invoices for post-audit. Valuation of cash, personal property, consumables, services and real property follows rules set in the Regulations.
6. Other conditions. Availment is mutually exclusive with similar incentives under other laws. Government agencies send the BIR a master list of entities with granted or cancelled incentives within twenty (20) days after each taxable quarter, and pending requests are deemed approved upon effectivity if the applicant qualifies.

Who is affected

• Registered export and domestic market enterprises
• Adopting Private Entities
• Enterprises with a registered EBET Program
• Donors to public schools and Technical-Vocational Institutions

Deadlines and effectivity

• EBET 50% deduction: until December 31, 2027
• EBET 75% deduction: starting January 1, 2028
• Master list: within twenty (20) days after each taxable quarter
• Issued March 31, 2025

Summary by Tax Resources PH. It is not a substitute for the full text of the issuance or professional advice.