BIR streamlines rules on tax breaks for education partnerships

The Bureau of Internal Revenue (BIR) has made it easier for private companies to get tax breaks when they partner with schools and support education programs.

On Monday, the BIR issued Revenue Memorandum Circular (RMC) No. 23-2026, which sets clearer rules on the submission of documentary requirements, as well as compliance, accreditation, certification, and reporting processes for private entities seeking tax incentives tied to education programs.

The circular also explains how Revenue Regulations No. 13-2025 will be applied, helping clear up confusion about requirements and fixing gaps in the process that stakeholders had raised concerns about.

“With the issuance of RMC No. 23-2026, we are making it simpler and faster for the private sector to access the tax incentives they earn by supporting Philippine education,” BIR Commissioner Charlito Martin Mendoza said in a statement.

“By streamlining these procedures, the BIR reaffirms its commitment to a transparent and efficient tax system that empowers our partners to invest in the Filipino workforce and contribute to national development,” he added.

The tax incentives cover initiatives under laws such as the Adopt-a-School Act of 1998, the Enterprise-Based Education and Training Framework Act, and relevant provisions of the Tax Code.

According to the BIR, the circular aims to reduce administrative burdens, eliminate ambiguities, and ensure more consistent application of tax incentives.

It also aligns incentive rules with broader efforts to strengthen workforce development, improve access to education, and encourage industry participation in training and skills development.—MCG, GMA News