The Technical Education and Skills Development Authority (Tesda) said tax breaks will be given to companies that accept students of technical and vocational courses as trainees.
Tesda Director General Joel Villanueva said Tesda wanted to boost the dual training system (DTS) mandated by law since 1994 under Republic Act No. 7686, which remains insufficiently implemented for various reasons.
The DTS was designed to give tech-voc students hands-on training in the workplace on top of theoretical training in schools.
But many companies reportedly see such training as an additional expense and are not inclined to partner with technical and vocational schools.
In a circular, Villanueva laid down the tax incentives for companies which will participate in the DTS.
Among these are the deduction from the taxable income of the actual expenses paid to the accredited dual training system educational institution’s trainees and the deduction of financial aid paid for the operation of the system within the taxable year.
Since the DTS educational program is a national priority, corporate contributions shall be deductible from a company’s taxable business income for the period when the contribution was made. Dona Z. Pazzibugan