The Bureau of Internal Revenue (BIR) has ordered the suspension of the implementation of a new regulation imposing higher taxes on private schools including private colleges and universities.
According to the Revenue Regulations No. 14-2021, dated July 28, 2021, this is to ease burden of taxation among propriety educational institution, especially during this time of COVID-19 pandemic.
“And taking into account the pending Bills in Congress seeking to amend Section 27 of the National Internal Revenue Code (NIRC) of 1997, as amended,to finally clarify the income taxation of schools, the implementation of following provisions of Revenue Regulations (RR) No. 5-2021, dated April 8, 2021 are hereby suspended pending passage of such appropriate legislation,” as cited in the RR.
In relation to this, it was supported by the Sangguniang Panlalawigan of Palawan through Resolution No. 16018-2021 entitled “Expressing Opposition to the Imposition of 25% Income Tax Rate From the Current 10%, on Private Educational Institutions Under Bureau of Internal Revenue (BIR) Revenue Regulations No. 5-2021 and Urging the BIR to Review and Rectify the same,” authored by Board Member Ryan Dagsa Maminta.
“Ngunit, hindi pa rin ito ang pang-matagalang solusyon bagkus po ay ang amyenda sa batas at pag-aayos ng mga kaukulang probisyon nito upang hindi na maulit ang tangka na maitaas ang buwis ng mga institusyon na nabanggit. Suportado din po natin ito sa pamamagitan ng Provincial Resolution No. 16020-2021,” according to BM Maminta in his Facebook post.