TAX breaks await businesses that will partner with the government on enterprise-based education and training of workers and students under a new law signed recently by President Ferdinand Marcos Jr., according to Camarines Sur Rep. Luis Raymund Villafuerte.
In a statement, Villafuerte said that under Republic Act (RA) 12063, or the Enterprise-Based Education and Training (EBET) Framework Act, which Marcos signed in November, participating private companies can avail of huge income tax deductions — equivalent to 50 percent of their actual training expenses between now and end-2027, and a higher 75 percent starting in January 2028.
Businesses granting donations, subsidies or financial aid to technical vocational institutions with EBET programs are exempted from paying the donor’s tax and shall be deductible from the gross income of the donor for that year.
The law, Villafuerte said, also “provides for the establishment of a one-stop shop and/or online portal meant to make it easy for participating enterprises to avail of the tax breaks.”
“It is only fitting that tax breaks and exemptions be given as a financial incentive to EBET-participating enterprises, as this novel program is designed to address a major factor behind unemployment and underemployment woes, which is the nagging jobs-skills mismatch that prevents many workers and new graduates from getting hired or having jobs that actually suit them because they lack the skills or competencies needed by most employers,” Villafuerte explained.
The Department of Finance, Bureaus of Internal Revenue and Customs, and the Technical Skills and Development Authority (Tesda) are tasked to consult relevant stakeholders on formulating the rules and regulations, including the streamlining of processes, to encourage enterprises to support and participate in the EBET.
Villafuerte added that the EBET law will combine on-the-job work, apprenticeship, and dual-tech training into one comprehensive program that the government, through Tesda, can close the skills gap in the labor force by training workers and students to improve their work competencies and make them “adaptable, future-ready” employees.
“This worker-accessible and industry-relevant enterprise-based training meant to bridge the skills of workers with the demands of industries will afford members of our labor force opportunities for acquiring new skills, competencies, or entrepreneurial know-how that will boost their prospects for getting quality, higher-paying jobs, especially in the priority sectors,” Villafuerte said.
He added that the EBET law will address the skills-jobs mismatch problem noted by the Second Congressional Commission on Education (Edcom 2), which is among the key reasons behind unemployment and underemployment.
“The training paths under this new government-private sector program will enhance graduates’ and workers’ readiness for the local and overseas job markets by making them more adaptable to and aligned with the ever-changing demands of industries,” Villafuerte said.