C. INCENTIVES TO EDUCATION
Section 45. Declaration of Policy - It is the policy of the State in the pursuit of its national education development goals to provide an incentive program to encourage the participation of the community in the development of the educational sector.
Section 46. Relating to School Property - Real property, such as lands, buildings and other improvements thereon used actually, directly and exclusively for educational purposes shall be subject to the real property tax based on an assessment of fifteen per cent of the market value of such property: Provided, That all the proceeds from the payment thereof shall accrue to a special private education fund which shall be managed and disbursed by a local private school board which shall be constituted in each municipality or chartered city with private educational institutions with the mayor or his representative as chairman and not more than two representatives of the institutional taxpayers, and, likewise, not more than two residents of the municipality or chartered city who are alumni of any of the institutional taxpayers as members: Provided, further, That fifty percent of the additional one percent tax on real estate property provided for under Republic Act 5447, shall accrue to the special private education fund: Provided, finally, That in municipalities or chartered cities wherein the number of private institutions with individual enrollment of pupils and students over five thousand exceeds fifteen, the members of the private school board shall be increased to not more than fourteen members determined proportionately by the Minister of Education, Culture and Sports. The private school board shall adopt its own rules which shall enable it to finance the annual programs and projects of each institutional taxpayer for the following purposes; student-pupil scholarships; improvement of instructional, including laboratory, facilities and/or equipment; library books and periodicals acquisition; and extension service in the community, in that order of priority.
Section 47. Relating to Gifts or Donations to Schools - All gifts or donation in favor of any school, college or university recognized by the Government shall not be subject to tax; Provided, That such gifts or donations shall be for improvement of classrooms and laboratory of library facilities, and shall not inure to the benefit of any officer, director, official, or owner or owners of the school, or paid out as salary, adjustments or allowance of any form or nature whatsoever, except in support of faculty and/or professorial chairs.
Section 48. Relating to Earnings from Established Scholarship Funds - All earnings from the investment of any duly established scholarship fund of any school recognized by the government, constituted from gifts to the school, and/or from contributions or other resources assigned to said fund by the school, if said earnings are actually used to fund additional scholarship grants to financially deserving students shall be exempt from tax until the scholarship fund is fully liquidated, when the outstanding balance thereof shall be subject to tax.
Section 49. School Dispersal Program - All gains realized from the sale, disposition or transfer of property, real or personal, of any duly established private school, college or university, in pursuance of a school dispersal program of the government or of the educational institution as approved by the government, shall be considered exempt from tax if the total proceeds of the sale are reinvested in a new or existing duly established school, college, or university located in the dispersal site, within one (1) year from the date of such sale, transfer or disposition; otherwise, all taxes due on the gains realized from the transaction shall immediately become due and payable.
Section 50. Conversion to Educational Foundations - An educational institution may convert itself into a non-stock, non-profit educational foundation, in accordance with the implementing rules to be issued jointly by the Ministry of Education, Culture and Sports and the Ministry of Finance.
In the case of stock corporations, if for any reason its corporate existence as an educational institution ceases and is not renewed, all its net assets after liquidation of the liabilities and other obligations may be conveyed and transferred to any non-profit educational institution or successor non-profit educational institution or to be used in such manner as in the judgment of said court will best accomplish the general purposes for which the dissolved organization was organized, or to the State.
http://www.lawphil.net/statutes/bataspam/bp1982/bp_232_1982.html
No comments:
Post a Comment