RMC No. 23-2026, released on March 30, addresses certain provisions in Revenue Regulations (RR) 13-2025, which consolidated the rules for claiming tax incentives under the Adopt-a-School Act (RA 8525), the EBET Framework Act (RA 12063), and the Tax Code, The circular aims to encourage more companies to participate in these programs and help public schools and technical institutions upgrade facilities and training programs.

Key clarifications

Under the EBET Act, only enterprises are eligible to implement EBET programs. The BIR clarified that the term “technical-vocational institutions” in RR 13-2025 refers exclusively to enterprises registered with TESDA to operate an EBET framework. Academic institutions are not covered by this designation.

The circular also provides guidance on calculating tax incentives. “Additional deduction” refers to a deduction on top of the regular allowable deductions under Section 34 of the Tax Code. Until December 31, 2027, enterprises can claim 150% of actual training expenses, which includes 100% of the actual cost plus an additional 50% deduction. Starting January 1, 2028, the additional deduction will rise to 75% of training expenses, subject to a cap of 5% of total direct labor expenses or ₱25 million per year, whichever is lower.

RMC 23-2026 clarifies the treatment of training expenses covered by scholarships. EBET programs may be subsidized through scholarships, with general programs covering training costs, assessment costs, and training support funds, while apprenticeship and upskilling programs cover only training and assessment costs. Only expenses actually incurred and shouldered by the enterprise are deductible, while costs funded by third-party scholarships are excluded. Unclaimed EBET incentives cannot be carried over and are forfeited after the applicable taxable year.

The circular also addresses donations under the Adopt-a-School Program. Tax incentives under EBET and Adopt-a-School are mutually exclusive, meaning enterprises may claim only one type of tax incentive for a particular expense or donation. Private entities that adopt public schools can deduct contributions directly incurred for the program, with an additional 50% deduction. These contributions are exempt from donor’s tax. For foreign donations, VAT and excise tax are assumed by TESDA or the Department of Education and the Commission on Higher Education. Local donations may be subject to VAT if they are considered a “transaction deemed sale” of goods originally intended for sale; otherwise, such transfers are VAT-exempt.

Purpose and Impact

The consolidated regulations and RMC are designed to incentivize companies to actively participate in education and skills development initiatives, helping address the mismatch between the labor market’s needs and the country’s workforce capabilities. Under the Tax Code, registered enterprises may claim a 50% additional deduction on labor expenses and a 100% additional deduction on training expenses incurred during the taxable year. The 100% deduction applies only to training provided to Filipino employees directly engaged in the enterprise’s production of goods or services.

For enterprises implementing a registered EBET framework, RR 13-2025 outlines the specific incentives available to technical-vocational institutions, reinforcing the government’s goal of fostering private-sector collaboration in education and workforce development.

The program reached Calupisan Elementary School in Rizal municipality and Paliisan and Catagupan Elementary Schools in Balabac town, bringing much-needed support to hard-to-reach communities. Through the installation of solar photovoltaic (PV) systems, these previously unenergized schools now have reliable electricity, better classroom lighting and ventilation, and the ability to use multimedia tools and Wi-Fi to access online educational resources.

As part of the initiative, Meralco Employees’ Fund for Charity Inc. (MEFCI) and Lenovo Philippines donated televisions, printers, and laptops, empowering teachers to integrate multimedia content into lessons and foster more interactive learning.

For students who walk hours to attend classes, access to electricity and technology has become a strong incentive to stay in school. Analyn Miñao, a kindergarten teacher at Calupisan Elementary School, noted the benefits of the program in providing more resources and visual aids. Likewise, Emman Riambon, also from Calupisan, highlighted how the new equipment immediately increased student engagement.

Teachers from other schools shared similar optimism. Myca Tamba of Paliisan Elementary expressed gratitude for the new tools, saying, “We are grateful for everything that were given for our students. These will help us improve and keep up with the developments happening beyond our island.”

Department of Education Schools District Supervisor Fe Agbon also praised the program, noting that students now gain broader exposure to learning resources despite their remote locations.

“What we delivered to these remote schools in Palawan is much more than electricity—it is the light of hope for every student,” said OMF President Jeffrey Tarayao. “Made possible by the shared commitment of our partners, we are bringing opportunities to the farthest corners of the nation and ensuring that no community is left behind in the journey toward a brighter future for Filipinos.”

Since its launch in 2011, OMF’s School Electrification Program has energized over 300 public schools nationwide, benefitting more than 92,000 students and 3,000 teachers.

Held on November 13, 2025 (every second Thursday of November), the Day of the Future brought together Swiss companies, Filipino students, and educators for a nationwide program focused on career discovery and vocational readiness.

Inspired by Switzerland’s long-standing Nationaler Zukunftstag, the initiative gives young learners the opportunity to explore real workplace environments and gain an understanding of emerging career pathways. In the Philippines, it is implemented through the Swiss Cultural Fund, which supports cultural, educational, and youth-focused programs. Now in its third year locally, the program continues to broaden its reach alongside the Embassy’s growing network of advocacy partners.

For this year’s edition, the following Swiss companies opened their facilities to public school students nationwide:

• Endress+Hauser
• Roche Philippines
• Holcim Philippines
• Novartis Philippines
• SGS
• Partners Group
• Sateco

Each company designed its own full-day program featuring workplace tours, interactive demonstrations, hands-on sessions, and mentorship dialogues. These activities gave students firsthand exposure to sectors where Swiss companies are major contributors to the Philippine economy—including engineering, pharmaceuticals, finance, advanced manufacturing, and scientific solutions.

The Philippine activities ran in parallel with programs in Switzerland, underscoring both countries’ shared commitment to empowering the next generation and strengthening long-term bilateral ties through education and industry collaboration.

This year’s initiative was held in close partnership with the Department of Education (DepEd), which played a pivotal role in selecting participating public schools nationwide and helping ensure broad student participation. The Embassy expressed its appreciation for DepEd’s continued cooperation in expanding access to meaningful learning experiences for Filipino youth.

At its core, the Day of the Future underscores the importance of vocational training—an anchor of Switzerland’s internationally acclaimed education system. By immersing young Filipinos in real-world professional settings, the program encourages them to explore multiple career pathways and develop future-ready skills aligned with an evolving labor market.

Through the Swiss Cultural Fund and its sustained partnerships with industry and government, the Swiss Embassy reaffirms its commitment to supporting youth empowerment and strengthening Switzerland–Philippines cooperation in education, innovation, and workforce development. With each edition, the Day of the Future continues to grow as a bridge between Swiss expertise and Filipino potential.

With modernized monitoring stations and real-time data sharing, Japan’s support helps PAGASA and DepEd educate young learners in Bukidnon on early warning systems, creating a culture of preparedness.

The initiative, led by PAGASA and DepEd with support from the Japan International Cooperation Agency (JICA), is part of a ₱1.278 billion project to modernize the country’s Flood Forecasting and Warning System (FFWS). The project includes 13 monitoring stations, two X-band radars, and a real-time data network to improve flood forecasting and early warning capabilities.

Miarayon was chosen for the activity due to its role in hosting Rainfall Gauge Station 13, a key installation for upstream flood monitoring. Participants learned how rainfall and water level data support timely, science-based warnings that save lives.

By engaging the school and community, the program highlights that disaster preparedness is a shared responsibility, fostering a lasting culture of readiness to reduce climate-related risks in Bukidnon and Misamis Oriental.

Facilitated by two American trainers from the U.S. Department of State’s English Language Specialist Program, this is the first ALS workshop supported by the United States in Davao City.

The activity entitled “Embracing Student-centered Learning: Art as Expression” provided participants with knowledge and tools to integrate innovative, hands-on teaching in ALS curricula, ensuring that students are active participants in the learning process.  The workshop included teaching demonstrations, an introduction to creating sustainable and engaging teaching projects, and peer learning.

The American trainers also introduced free English language teaching resources from the U.S. government that will help enhance curriculum development and facilitate engaging classroom activities.

“The insights and strategies shared by our American teacher trainers are designed to significantly enhance the learning experience for ALS students,” U.S. Embassy Regional English Language Officer Jeff McIlvenna said.  “This initiative underscores the United States’ direct investment in the professional development of Filipino educators, reinforcing our shared dedication to expanding access to quality education and fostering human potential across the Philippines.”

“DepEd’s ALS champions inclusivity by reaching the lost, the least, and the last,” DepEd Davao City Division superintendent Reynante Solitario said.  “Supporting ALS teachers is vital so they can teach better and ensure that every learner, regardless of circumstance, is embraced and given a chance to thrive.”

ALS is a parallel learning system in the Philippines which provides a vital pathway to basic education for out-of-school youth and adults who lack access to formal schooling due to socioeconomic or geographical barriers.

The U.S. Embassy’s RELO is committed to supporting Philippine education through its English Language Specialist Program.  Previous initiatives include an early literacy project for K-7 teachers in Negros Occidental, which improved reading scores among students through intensive teacher training and community volunteer support in 2024.  Last year, RELO hosted an English proficiency training for the Philippine Army in Tarlac.

RELO also supports long-term educational partnerships.  Three American English Language Fellows are concluding their academic year with three universities in Bohol and Leyte, where they led preservice training for future teachers.  RELO is also in the process of establishing five new two-year English Access Scholarship Programs around the Philippines, which will provide deserving teenagers with intensive English language instruction and cultural immersion to boost their educational and career opportunities.

Issued March 31, 2025, Revenue Regulations (RR) 013-2025 consolidates the provisions to simplify and streamline the procedures and requirements for companies availing themselves of the tax exemptions and benefits under the Adopt-a-School Act of 1998 or Republic Act (RA) No. 8525, EBET Framework Act or RA 12063, and the Tax Code. 

Under the Tax Code, registered export and domestic enterprises are allowed to deduct 50% additional deduction on the labor expense incurred in the taxable year and 100% additional deduction on training expense incurred in the taxable year. 

The Code clarifies that the 50% additional deduction on the labor expense shall not include salaries, wages, benefits, and other personnel costs incurred for managerial, administrative, indirect labor, and support services. 

Moreover, the 100% additional deduction shall only apply to trainings, as approved by the Strategic Investment Priority Plan, given to the Filipino employees engaged directly in the registered business enterprise’s production of goods and services.

Meanwhile, under the Adopt-a-School Program, incentives are granted to a private entity that agrees to adopt and provide assistance to a public school. These perks include deduction from the gross income of the amount of contribution/donation that were actually, directly and exclusively incurred for the program, plus an additional amount equivalent to 50% of such contribution/deduction. 

This is provided that the deduction is availed of in the taxable year that the expenses were incurred and that it can be substantiated with sufficient evidence such as official invoice and other adequate records. 

Under the same program, another incentive for the adopting private entity is exemption from donor’s tax. For foreign donation, the value-added tax (VAT) and excise tax on the importation of goods shall be assumed by the Department of Education, Commission on Higher Education, or Technical Education and Skills Development Authority (TESDA).

In the case of local donation considered as a “transaction deemed sale” of goods or properties originally intended for sale by the adopting private entity, the local donation shall be subject to VAT on the transfer of said goods or properties.

“The said donor or Adopting Private Entity, however, is entitled to claim the available input tax subject to the rules on allocation among taxable sales, zero-rated sales and exempt sales,” points out RR 013-2025.

If the local donation is not considered as a “transaction deemed sale,” then the transfer of the goods or properties to the public school shall be exempt from VAT.

On the other hand, Section 4 of RR 013-2025 tackles the incentives granted to technical-vocational institutions (TVIs) implementing a registered EBET Framework under RA 12063. Here enterprises implementing a registered EBET program shall be entitled to the following tax exemptions and incentives: 

•    They shall be allowed to avail of an additional deduction from taxable income equivalent to 50% of actual training expenses from the effectivity of RA 12063 up to December 31, 2027, with the additional deduction increasing to 75% of the actual training expenses starting January 1, 2028. Such deduction shall not exceed 5% of their total direct labor expenses, or P25 million a year, whichever is lower. For this, the enterprise will have to secure the proper certification from TESDA.
•    Donations, contributions, bequests, subsidies, or financial aid actually paid or made to a TVI implementing theoretical instructions for the EBET programs within the taxable year shall be exempt from payment of donor’s tax and shall be deductible from the gross income of the donor, subject to the provisions of the Tax Code. For this, TVIs are not required to obtain accreditation but they should secure the proper certification from the TESDA. 

“Donations, contributions, bequests, subsidies, or financial aid made under this section, which are certified by the TESDA to be actually, directly and exclusively for the conduct of a registered EBET Program, shall be exempt from taxes and duties,” said the RR.  

Last March, TESDA deputy director general Nelly Nita Dillera said they are hoping the increase in the incentives offered for participants to the EBET program under the EBET Framework Act will encourage more firms to join. She noted that only more than 200 out of a million enterprises in the Philippines have joined the program as of 2023 data. 

She continued that the EBET program is envisioned to help overcome challenges such as the widening skills-job gap in the Philippines, which will be addressed through greater collaboration between industry, academe and government and fostering inclusivity by improving access of the workforce to quality training programs.

The newly issued RR shall take effect 15 days following publication in the Official Gazette or the BIR website.

The donated property will enable the school to accommodate an additional 2,880 students, helping to ease overcrowding at the facility that currently serves over 6,000 students.

“Today, we renew our commitment to Valenzuela and join Mayor Gatchalian’s mission to ensure that education is accessible to every young Valenzuelano,” said Cecile L. Ang, Chairperson of the San Miguel Foundation (SMF), during the deed of donation signing between SMC and the Valenzuela City government.

“Our vision is for every child, regardless of background, to reach their full potential through education,” she added.

Valenzuela Mayor Wes Gatchalian expressed gratitude to SMC Chairman and CEO, Ramon S. Ang who readily offered the land upon learning of the school’s need for expansion.

“Our promise is to put this property to good use with your vision in education and the vision of the city of Valenzuela. This land will give rise to a new home for students,” Gatchalian said.

For his part, Noel S. Bagang, Department of Education (DepEd) – Valenzuela Assistant Schools Division Superintendent, stressed the importance of teamwork between the city government and businesses to ensure that schools have the resources they need to effectively teach students.

He commended the city government for its strong partnership in building schools, providing classrooms and essential supplies. Bagang also acknowledged SMC’s ongoing commitment to supporting education through its San Miguel Foundation.

“From all of us here in Valenzuela, thanks to our benefactor, Ramon S. Ang and SMC. This is not just a piece of land. This is hope for learners that someday, somewhere… they can progress. And I hope Valenzuela can one day produce another RSA who can give back in the future,” Bagang said.

Meanwhile, Ms. Ang expressed hope to introduce SMF’s Better World program, specifically its partner AHA Learning Center’s “Accelerate, don’t remediate” program, to Valenzuela’s school children.

This program aims to help those struggling with basic reading and math catch up quickly and succeed.

SMF also focuses on helping children who are getting left behind in its other Better World centers in Tondo and Smokey Mountain, where it also offers classes in music, dance, and arts.

The foundation hopes to introduce similar remedial programs in Valenzuela.

In the coming months, 3E Project implementors will carry out various activities that will protect the health and well-being of students through drug prevention education. The program will also empower student leaders and campus organizations to initiate drug prevention policies and activities in their respective schools.

The pilot implementation of the 3E Project will begin in 20 public high schools in Cavite City, Makati, Puerto Princesa, and Quezon City, and will later expand to all public high schools in the four target cities.

The 3E Project was conceptualized by a group of Filipino experts who participated in the U.S. Department of State’s premier professional exchange program, the International Visitors Leadership Program (IVLP).  

During the launch, representatives from the Department of Education (DepEd), the University of Philippines Los Baños College of Human Ecology, and local leaders from the four cities signed a Pledge of Commitment to support the activities of the 3E Project.

To begin work on the 3E Project, the U.S. Embassy’s Office of International Narcotics and Law Enforcement Affairs (INL) funded a workshop from May 31 to June 2 where 40 subject matter experts developed strategies and action plans to make drug prevention education in public high schools more effective.  These plans include conceptualizing new drug prevention strategies for teachers; proposing revisions to DepEd’s drug prevention education curriculum; and engaging the youth in increasing awareness and sharing best practices in drug prevention through their student councils and campus organizations. 

Six technical working groups carried out initial work to design drug prevention learning modules that will be finalized at a “writeshop” to be hosted by the Quezon City government later in the year. 

Philippine Department of Education (DepEd) Assistant Secretary Dexter Galban thanked the United States government and local stakeholders for their joint efforts to curb drug use among the youth.  “There are 222,000 drug users aged 10 to 24 in the country. Through programs like the 3E Project, we are able to help form learners who are more resilient to combat the lure of illegal drugs.”

“It is crucial to create a supportive environment for our youth and work together to educate and support the youth, and provide them with the resources they need to make positive choices,” Quezon City government Chief of Staff Rowena Macatao said in remarks delivered on behalf of Mayor Joy Belmonte.

INL Director Kelia Cummins emphasized the critical nature of youth participation in anti-drug abuse policy and program development.  “The 3E Project leverages the power of young adults to advance the work of practitioners and support individuals in recovery, their families, and communities.  This results in a necessary and holistic approach to address drug use among the youth.”

Support for drug prevention is part of INL’s broader drug demand reduction program in the Philippines, designed to improve awareness, augment use of preventive measures, and engage multi-sectoral stakeholders in recovery and reintegration efforts for persons with substance use disorders.

Learn more about the Bureau of International Narcotics and Law Enforcement and its global drug demand reduction programs at www.state.gov/j/inl

Speaking to THEPHILBIZNEWS last Tuesday, October 25 at the Austrian Embassy National Day reception, Ambassador Fluss said that it would be a lot easier for the Israel Embassy and MASHAV to just donate the study tables for the children, but they all opted to take the laborious assembling and painting to show unity and spur inspiration to the children and teachers.

“My wife, Gila, is a teacher. We are happy to participate physically in the Brigada Eskwela and to work side by side with the community, especially with the teachers and students. This is a fulfilling initiative, and we hope that our little assistance will inspire the students to study well. Education is very important in Jewish tradition,” Ambassador Fluss said.

The Israeli Ambassador emphasized in his opening remarks the friendly relations between Israel and the Philippines. He said that the Embassy is eager to collaborate with various fields to strengthen the relations.

The event was held to support the preparations for the full implementation of face-to-face classes in the Philippines. The school thanked the Embassy’s generosity for donating more tables to help practice social distancing among the kindergarten pupils. In addition, the Israeli Embassy donated a number of gadgets and health supplements. This project is in partnership with MASHAV, Israel’s Agency for International Development Cooperation.

Among the guests during the turnover ceremony were Taguig City Mayor Ma. Laarni Cayetano; Schools Division Asst. Supt. Quinn Norman Arreza; BTIS faculty members headed by Principal Dr. Erlinda Butcon; the local barangay officials; and the Parent-Teachers Association of the school. The event was held on October 24, 2022, at Bagong Tanyag Integrated School (BTIS) in Taguig City.

Themed “Brigada Eskwela: Tugon sa Hamon ng Ligtas na Balik Aral,” the program aims to ensure that schools are safe and prepared for the reopening of in-person classes. HCPI supported by providing essential health and safety supplies such as non-contact thermal scanners, cleaning tools, disinfectants, and medical supplies to keep both students and teachers safe from the lingering risks of covid. Also known as the National Schools Maintenance Week, Brigada Eskwela serves as a venue for public schools, parents, and other members of the community to come together as partners in preparing school facilities for the students as they enter a new school year.

Honda has been a program partner since 2008, providing assistance to 18 schools near HCPI’s Laguna office through the giving of Education TV packages, clinic, school, and dental supplies, wash and drinking facilities, locker cabinets, disaster preparedness kits, and computers, among others, to help improve the tools and learning environment for the students.

“We congratulate the Brigada Eskwela partners and coordinators for your dedication through the years. This community is much like our home, and it is the members’ shared responsibility to protect the safety and well-being of the next generation. HCPI is always grateful for opportunities to help in activities such as this,” said Ms. Vicenta Balarbar, HCPI Executive Vice President, during the turnover ceremony that was also attended by Don Jose Integrated Highschool representatives: Ms. Catherine Javier, Principal I, Ms. Arlene Gaspard, Brigada Eskwela Coordinator, and Ms. Patria Aclo, Adopt-a-School Coordinator.

Visit www.hondaphil.com to know more about HCPI’s corporate social responsibility programs. Check the VIRTUAL SHOWROOM or visit the nearest Honda Cars dealership to know more about the Honda SENSING, the latest Honda vehicles, periodic maintenance guide, and the latest offers from Honda.