Friday, August 17, 2018
Filipino non-profit private schools and hospitals that adhere to high standards will continue to enjoy a corporate tax rate of 10 percent if a bill before the House of Representatives is adopted.
Finance Undersecretary Karl Kendrick Chua said the bill, dubbed the "Tax Reform for Attracting Better and High-quality Opportunities (TRABAHO) Bill, would "incentivize" private hospitals and educational institutions to upgrade their quality of service in order to be granted this special tax rate.
The bill does not cover religious schools, which are exempt under the Constitution from paying income tax provided they are organized as non-stock, non-profit corporations and no part of their net income belongs or benefits any member, organizer, officer, or person.
Chua said the Department of Health will establish the criteria for private hospitals to assess their performance and eligibility for the tax incentive.
The TRABAHO Bill provides a transition period for schools and hospitals to improve the quality of service they provide, before subpar institutions are taxed at a higher rate.