REVENUE MEMORANDUM CIRCULAR NO. 99-2020 issued on September 16, 2020 circularizes Republic Act No. 11448, entitled “An Act Expanding Access to Educational Services Through the Establishment and Administration of Transnational Higher Education, and Appropriating Funds Therefor.”

All revenues and assets of non-stock, non-profit Transnational Higher Education Institutions (TNHEIs), which are used actually, directly and exclusively for educational purposes shall be exempt from taxes and duties.

All grants, bequest, endowments, donations and contributions made to the TNHEI to be used actually, directly and exclusively by the TNHEI shall be exempt from Donor’s Tax, and the same shall be allowed as allowable deduction from the gross income of the donor for purposes of computing the taxable income of the donor in accordance with the provisions of the National Internal Revenue Code (NIRC) of 1997, as amended.

Further, all lands, buildings and improvements, actually, directly and exclusively used by a TNHEI for educational purposes shall be exempt from taxation.

All non-stock, non-profit TNHEIs shall also be entitled to all tax incentives granted to such entities in accordance with the provisions of the NIRC of 1997, as amended.