REVENUE MEMORANDUM CIRCULAR NO. 134-2024 issued on December 18, 2024, circularizes Republic Act No. 12063, titled “An Act Institutionalizing the Enterprise-Based Education and Training Framework and Appropriating Funds Therefor”.

Donations, contributions, bequests, subsidies, or financial aid actually paid or made to a Technical Vocational Institution (TVI) implementing theoretical instructions for Enterprise- Based Education and Training (EBET) Programs within the taxable year shall be exempted from donor’s tax and shall be deductible from the gross income of the donor, subject to the provisions of the National Internal Revenue Code (NIRC) of 1997, as amended. For this purpose, TVIs shall not be required to obtain accreditation, notwithstanding any law to the contrary, but they shall secure the proper certification from the TESDA.

Donations, contributions, bequests, subsidies, or financial aid made under this section, which are certified by the TESDA to be actually, directly, and exclusively for the conduct of a required EBET Program, shall be exempt from taxes and duties.

Notwithstanding any law to the contrary, an enterprise implementing a registered EBET Program shall be qualified to avail of an additional deduction from taxable income equivalent to fifty percent (50%) of actual training expenses from the effectivity of this Act up to December 31, 2027: Provided, that starting January 1, 2028, the additional deduction shall increase to seventy-five percent (75%) of the actual training expenses: Provided, further, that such deduction shall not exceed five percent (5%) of the total direct labor expenses, or Twenty- five million pesos (P25,000,000.00) a year, whichever is lower. For this purpose, the enterprise shall secure the proper certification from the TESDA.

An enterprise registered with an investment promotion agency and implementing an EBET Program may opt to avail of the incentives either under this Act or the applicable fiscal incentives under Title XIII of the NIRC of 1997, as amended: Provided, that the availment of incentives under Title XIII of the NIRC, as amended, shall preclude the simultaneous availment of fiscal incentives under this Act.