The Bureau of Internal Revenue (BIR) has clarified how companies can claim tax incentives under the Adopt-a-School Program and the Enterprise-Based Education and Training (EBET) framework, aiming to resolve confusion over deductions and eligibility.
Issued on 30 March, Revenue Memorandum Circular (RMC) 23-2026 explains that under the EBET Act, only registered enterprises, not academic institutions, can implement EBET programs.
The term “technical-vocational institutions” (TVIs) in previous regulations refers exclusively to these registered enterprises.
The circular also details how companies may compute additional deductions for training expenses. Until the end of 2027, businesses can deduct 150 percent of actual training costs — 100 percent actual expense plus a 50 percent additional deduction.