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The Adopt-A-School Program
Potential engineers, scientists, mathematicians, and artists are in our schools, but they may not have a chance to pursue their dreams due to economic difficulty. Their parents dream of a better life for their children and strive hard to provide well for them, but in many cases, even just the provision of food for each household’s table is already a st ruggle. The government allots the biggest share of the national budget to public basic education, but the amount still cannot keep up with the increasing student population. There are even more children who are out on the streets and who have to be shepherded into the schools, but government resources are simply not enough to provide them the free, quality education to which they are all entitled. We need generous hearts in the private sector to realize the spirit of Republic Act 8525 or the Adopt-A-School Act, enacted in 1988 for the very purpose of providing a venue for the strong and dynamic private sector to participate in nation-building through investments in the education of Filipino children. The rewards of such investments come through an educated generation that will succeed ours, run our enterprises, and steer this nation to greater heights. Over the years, DepEd introduced interventions to reduce student dropouts and keep the youth off the streets. It has sought to increase student achievement levels and improve teacher performance. It continues to bring the issues and needs of public education to every Filipino who cares, in an effort to invite each and everyone to help boost education opportunities for our young. DepEd, through the Adopt-A-School Program (ASP), sincerely invites all members of private entities to accept our offer of active partnership in the noble goal of educating all Filipinos. Education is the key to national growth. With Adopt-A-School, each Filipino can have the opportunity to enjoy his right to education, to open his eyes to the wonders and challenges of the world, to pursue his dreams, and to contribute capably towards the nation’s progress.

Every Filipino child deserves to finish school. Every Filipino deserves the benefits of an education. This nation needs an educated citizenry.

There are many ways by which you can help.
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we open up a rich world of information to them and help develop the habit of reading. Furniture. and the provision of vitamins. Learning Support Our private-sector partners can give public school children exciting and dynamic opportunities for learning at the larger world outside of school by sponsoring relevant field trips. television sets. Physical Facilities. e-libraries. Badly-needed chairs. eye checkups and eyeglasses to students and teachers. Our partners can sponsor feeding programs. Reading Program By providing books and supplementary reading materials to our public school children. and non-digital teaching aids such as pop-up materials and colored illustrations. medical-dental missions. wash facilities. water systems and toilets must also be provided. 3 . and e-learning materials are always needed to make classroom instruction interactive and effective. internet connectivity. computer laboratories. Students and teachers will also benefit from audio-visual educational materials such as e-books. a key to improving academic performance. Laptops. Technology Support We welcome the private sector’s continuing support in promoting DepEd’s imperative thrust to integrate fast-changing technology within basic education. blackboards. and Real Estate The construction of additional classrooms will decongest our crowded public schools and provide more substantial school hours for the children. DVDs. educational films. desks. and these will likely create a physical environment that is conducive for learning. computers. Health and Nutrition Appropriate remedies for the health and nutrition problems of public school children will help improve students’ school performance and learning retention. nutritional supplements.Packages Infrastructure. essential health care programs. deworming interventions.

Sponsoring training programs in teacher education institutions will greatly help our teachers gain relevant skills that will update their knowledge and increase their effectiveness in the classrooms. stipends. spelling-check devices. overhead projectors) and hi-tech devices (software. specialized keyboards and peripheral devices). and other forms of financial and material assistance may be extended to public school children to alleviate their parents’ financial burden and obligations. special chairs. These range from no-tech devices (pencil grips. computerized systems. dry-erase boards. 4 . Assistive Learning Devices for students with special needs Assistive learning devices are used to increase or improve the functional capabilities of a child with special needs.Packages Direct Assistance School supplies. Training and Development Private sector groups and individuals can extend assistance not only to schoolchildren but also to their teachers. picture cards) to mid-tech (tape recorders.

and Memorandum of Agreement (or Memorandum of Understanding) 5 . other shipping documents. Where can a private entity obtain the certification / endorsement so that it can avail of the tax incentives as provided for under the Adopt-a-School Law? The private entity should request an endorsement from the DepEd Central Office in Pasig thru the Adopt-a-School Secretariat. Commercial Invoice and Packing List From the Donee Notarized Deed of Donation. and Certificate of title and tax declaration (if the donation is in the form of real property). may obtain tax incentives. The endorsement is approved by DepEd. 3.a-School Program? Active involvement in the Program can be mutually beneficial to both parties concerned. what are the documents required to avail of duty-free entry of goods? The documents required prior to the issuance of duty-free certification by DepEd and the Department of Finance (DOF) are the following: From the Donor Bill of Lading. While DepEd gets its schools improved.Frequently Asked Questions What are the benefits an adopting private entity can avail of under the Adopt. For donations coming from overseas. Duly notarized /approved Agreement Duly notarized Deed of Donation . What are the requirements needed by the Revenue District Office of the Bureau of Internal Revenue (BIR) in considering the application of the private entity for tax incentives? The private entity applying for tax incentives must submit the following: 1. strengthened corporate image and goodwill within the school community. Air Waybill. adopting private entity in return. 4. 2. Parcel Notice. Deed of Acceptance.Acceptance Official receipts showing the actual value of the donation.

The private entity should have been in existence for at least a year. whether elementary. insufficient budget or funds and/or deficient in number of textbooks and instructional materials. secondary. A private entity that intends to participate should have a credible track record to be supported by a certificate of registration with the Securities and Exchange Commission (SEC) or with the Cooperative Development Authority (CDA). low income municipalities and other schools with undernourished learners. laboratories. severe classroom shortage.Frequently Asked Questions Who can help? Any private individual. group. basic qualifications of participants to the Program. How will recipient schools be selected? The adopting private entity has the prerogative of identifying the school of its choice. 6 . nutrition program. Packages range from building classrooms. post-secondary or tertiary preferably located in any of the current poorest provinces/municipalities can avail of the donations under the Program. Which schools need assistance? Any government school. any of the three education agencies will provide the adopting entity a list of priority schools and their identified needs. organization or institution can become partners in education. staff development. Priority shall be given to schools located in the poorest provinces as determined by the National Statistical Coordination Board (NCSB). to the provision of instructional materials. poor but high performing learners. What assistance can be provided? The program carries a menu of options called packages that a stakeholder can select from. as well as the area and geographic location where it wishes to place its support. In case the adopting private entity has no particular school in mind. The packages are designed to meet the school’s needs in accordance with the private sector’s capacity and thrusts. There are however. elearning.

group. The parties involved in the signing of the MOA will be the adopting entity and the head of the school concernced. The MOA will be subject for review and approval by the Adopt-A-School Secretariat. company. The MOA shall specify the terms and conditions of the adoption including the tasks and responsibilities of the private entity and the school. In cases where the adopting entity adopts multiple schools in a certain division. a MOA shall be facilitated between the adopting entity and the corresponding DepEd official. 7 . The Agreement shall last two years with the possibility of extension. the Secretary of Education shall sign the MOA. The adopted school shall sign a Memorandum of Agreement (MOA) with the adopting private entity. For a school located within a particular Division. and for projects that are national in scope. another school. The Adopt-A-School Secretariat shall facilitate the linkage between the adopting individual and the target school. the Regional Director.Adoption Procedures Schools can be adopted by an individual. the Schools Division Superintendent will be the official signatory. The Secretariat will provide the adopting entity with different adoption packages and the list of prospective schools with their corresponding needs. for regional project coverage. foundation or organization.

addressing the classroom shortage in public schools) is by the provision of _______________ (e. Metro Manila. a corporation/organization organized and existing under the laws of the Republic of the Philippines.g. WITNESSETH: WHEREAS . herein referred to as “ DepEd”. has proposed to DepEd the _____________ (e. NOW THEREFORE. the PROPONENT is a business enterprise engaged in ___________________ . the PROPONENT. particularly in the poverty-stricken provinces. construction of a three –classroom-school building). _______________________________. WHEREAS. Implementing the Tax Incentives Provision of RA 8525 otherwise known as the Adopt-a-School Act of 1998 has been issued by the Department of Finance thru the Bureau of Internal Revenue. -and(company/organization’s name). 10 s. Philippines. WHEREAS. WHEREAS. WHEREAS. with office address at __________________________________________________ represented in this transaction by its President/Chairman (name)____________________________. The DEPARTMENT OF EDUCATION . hereinafter referred to as the “PROPONENT’. with office address at DepEd Complex Meralco Ave. represented by its Secretary.g. Republic Act 8525. by and between. for and in consideration of the foregoing premises and the terms and conditions herein set forth. DepEd believes that one way of ________________________________(e. new school building ). and WHEREAS. otherwise known as An Act Establishing the “Adopt-ASchool Program” and Providing Incentives Therefore and for Other Purposes. Pasig City Metro Manila. DepEd has the responsibility of securing resources to make our public schools competitive and is now calling on the private sector to serve as a major partner in the nation’s development and in the improvement of the public education system. was entered to encourage private companies to assist in the delivery of better quality education to public schools in the country. an Agency of the government.. the parties hereby agree as follows: 8 . Revenue Regulations No. 2003.g.Memorandum of Agreement (sample) This Agreement made and entered into this _____ day of ___________ at Pasig City.

Section 2 Rights and Obligations of the DepEd a. Assist in the evaluation of the implementation of the Program and. b. especially during the three-month-period from the commencement of construction and cause contractors to comply with and adhere to basic safety practices in and during construction. Section 3 Rights and Obligations of the PROPONENT a. suppliers and consultants by the Proponent. d. with toilet. chairs and chalkboards). classroom equipment including tables. b.Memorandum of Agreement (sample) Section 1 Description of Sponsorship or Package The project known as _____________ ( Title. Actual cost of the construction shall be paid out to contractors. Likewise. the Proponent shall coordinate closely with DepEd in the implementation of program activities. A Deed of Donation in favor of DepED for the completed school building shall be executed. Review and endorse the application of the adopting private entity for tax incentive entitlement to the Revenue District Office. Coordinate with the adopting private entity in the implementation of program activities and accept the package of assistance thru the School Division Office. c. d. The Proponent shall administer the efficient and effective implementation of the construction. consists of the construction of three classroom school building . c. and e. The infrastructure shall be built according to the dimensions specified by DepED and shall be designed in pursuant to the building plans and architect’s perspectives hereto attached as “Annex A”. Section 4 Scope of the Program or Package The project beneficiary shall be (name of school. specifications and construction drawings for the school building and contract out the construction of the school building to duly licensed contractors. The Proponent shall cause the planning and construction of a three-classroom-school building. The Proponent shall be entitled to engage services of licensed architects and engineers to prepare the plans. designs. if any ) . Provide policy guidance and directions to ensure the proper implementation of the Program. address) Section 5 Program Cost\ Breakdown The estimated construction cost of the school building is (amount) 9 .

such nullity shall not affect the validity of the remaining provisions hereof. DEPARTMENT OF EDUCATION By ______________________________ Secretary SPONSORING BODY By ___________________ President/Head SIGNED IN THE PRESENCE OF: _____________________________ ___________________ 10 .Memorandum of Agreement (sample) Section 6 Term (starting term and ending term) The School building shall be constructed during a three-month period from commencement of construction and following a timetable which will cause the completion of construction before 2007. Section 7 Capacity and Authorization The parties herein warrant that they have the capacity. SIGNED on the date and at the place first above written. Section 9 Breach of Contract The violation or omission of any of the provisions of this Agreement shall be ground for the cancellation or rescission of the same without need for legal or court action. power and requisite authorization to enter into this Agreement Section 8 Separability Clause Should any part of this Agreement be judicially declared null and void.

Issued on/at________________ ______________________CTC#______________. No. Issued on/at _______________ Known to me and to me known to be the same persons who executed the foregoing instrument.________ Book No. BEFORE ME this _________(date)________-____ . WITNESS MY HAND AND NOTARIAL SEAL. signed by the parties in their instrumental witnesses each and every page thereof._______ Series of _________ 11 . on the date at the place first written above. and they acknowledged to me that the same is their free and voluntary act and deed and that of the corporations herein they represented. personally appeared: _____________________ CTC#_______________. NOTARY PUBLIC Doc. ________ Page No. This Memorandum of Agreement consists of ______ pages including this page in which this acknowledgement is written.Memorandum of Agreement (sample) ACKNOWLEDGMENT REPUBLIC OF THE PHILIPPINES) ______________________________ ) ss.

Acceptance (Sample) DEED OF DONATION KNOW ALL MEN BY THESE PRESENTS: This Deed of Donation made and executed by the (Name of Company) herein represented by its (title of the representative) (name of the representative). DONEE (School Principal) ________________________ Name of School & Address 12 . hereinafter called the DONOR .. IN WITNESS WHEREOFE. interests and title on: (title of donation)____________________________________ Details of Donation _______________________ _______________________ School and Address ______________________ ______________________ with a total amount of Php _________________________________. 200_ _________________________ DONOR DEED OF ACCEPTANCE The DONEE. transferred and conveyed by way of donation to the DONEE. and expresses his most sincere appreciation for the benevolence shown by the DONOR. the DONOR has freely and voluntarily given. LUISTRO FSC with office address at DepEd Complex. the DONOR has hereto subscribed herself/himself this __ day of ________________. with office address at ______________________. ARMIN A. hereby accepts and acknowledges the donation from the (DONOR). 200_ in __________________. IN WITNESS WHEREOF.Deed of Donation. WITNESSETH That for and in consideration of a desire to contribute a share for the cause of the education of Filipino learners through the Adopt-a-School Program of the Department of Education. the DONEE has set his hands this ___ day of __________. BR.in favor of The DEPARTMENT OF EDUCATION herein represented by its SECRETARY. its successors and assigns free and clear of any and all liens and encumbrances whatsoever all its rights. Meralco Ave. for and in behalf of the school. Pasig City Metro Manila hereinafter called the DONEE.

Doc.Deed of Donation. and which is signed by the parties concerned on each and every page thereof. WITNESS MY HAND AND NOTARIAL SEAL. Armin A. on the date at the place first written above.________ Series of ________ NOTARY PUBLIC 13 . This instrument refers to a Deed of Donation and Certificate of Acceptance that consists of 1 page.Acceptance (Sample) SIGNED IN THE PRESENCE OF: ____________________________ (Signature over Printed Name) _______________________ REPUBLIC OF THE PHILIPPINES) ____________________________ ) ss. and they acknowledged to me that the same is free and voluntary act and deed. ACKNOWLEDGMENT BEFORE ME this (date). including this whereon this acknowledgement is written.________ Book No. including that of the entities that they represent. ________ Page No. personally appeared to me with BR. Luistro FSC ________________________________ ______________________ CTC# ________________________________ CTC# _______________ Issued on/at _______________ Issued on/at Known to me and to me known to be the same persons who executed the foregoing instrument. No.

Adopt-a-School Program. nineteen hundred and ninety seven. No. Declaration of Policy. provision of books. 7971 S. the twenty-eight day of July. Towards this end. the State shall institute programs to encourage private companies and enterprises to help in the country. or tertiary.” SEC. AND FOR OTHER PURPOSES Be enacted by the Senate and House of Representatives of the Philippines in Congress assembled. secondary. whether elementary. on Monday. SECTION 1. 3. preferably located in any of the twenty (20) poorest provinces identified by the Presidential Council for Countryside Development or any other government agency tasked with identifying the poorest provinces in. but not limited to. particularly those in poverty-stricken provinces. and modernization of instructional technologies. – It is the policy of the State to provide quality and relevant education to the Filipino youth and to encourage private initiative to support public education. – This Act shall be known and cited as the “Adopt-a-School Act of 1998. 1827 Republic of the Philippines CONGRESS OF THE PHILIPPINES Metro Manila Tenth Congress. upgrading of existing facilities. 14 .Republic Act 8525 II. construction facilities. – there is hereby established the “Adopt-a-School Program” which will allow private entities to assist a public school. 2. the following areas: staff and faculty development for training and further education. [REPUBLIC ACT NO. publications and other instructional materials. 8525] AN ACT ESTABLISHING AN “ADOPT-A.SCHOOL PROGRAM” PROVIDING INCENTIVES THEREFOR. Title. SEC. Third Regular Session __________________ Begun and held in Metro Manila. No.

that such MOA shall be subject to review and approval of the Superintendent of Schools of the province or district concerned: Provided. 7. after an appropriate review. SEC. – A review of the adoption shall be undertaken by the local school board of the province or city where the school is located. The Council shall be composed of the Secretary of the Department of Education. expenses incurred by the adopting entity for the “Adopt-a-School Program” shall be allowed an additional deduction from the gross income equivalent to fifty percent (50%) of such expenses. – A Coordinating Council. SEC. That the agreement shall last for at least two (2) years with the possibility of extension: Provided. Periodic Review. 5. recommend to the Coordinating Council the termination of the adoption. 4. and the representative from the National Federation of Chambers of Commerce and Industry (NFCCI) to be appointed by the President of the Philippines. The standards and guidelines for the review shall be formulated by the Coordinating Council created under Section 7 hereof. the adopting entity shall be represented in the local school board of the municipality where the adopted elementary or high school is located. Additional incentives. as members. finally. That such period may be shortened only in cases where the adopting entity is dissolved before the end of such period unless otherwise earlier terminated in accordance with the succeeding section. further. SEC. in addition to the incentive provided in the preceding section shall be entitled to have its name emblazoned beneath the name of the school after words indicating that the school is under the “Adopt-a-School Program”. Valuation of assistance other than money shall be based on the acquisition cost of the property. hereinafter referred to as the Council.Republic Act 8525 A Memorandum of Agreement (MOA) specifying the details of the adoption shall be entered into between the adopting entity and the head of the school concerned: Provided. the Chairman of the Commission on Higher Education (CHED) and the DirectorGeneral of Technical Education and Skills Development Authority (TESDA). Coordinating Council. SEC. – Provision of existing laws to the contrary notwithstanding. 15 . 6. is hereby created to coordinate and monitor the implementation of this Act. The adopting entity may appeal the assessment to the Coordinating Council whose decision shall be final and unappeasable. Additional Deduction of Expenses Incurred for the Adoption. The results of the review shall be taken into consideration in the assessment of the application for tax credits by the adopting entity. Culture and Sports (DECS) as chairperson. Such valuation shall take into consideration the depreciated value of the property in case said property has already been used. The school board may. as co-chairpersons. – The adopting company or enterprise. Moreover. and the chairperson of the Presidential Council for Countryside Development (PCCD).

President of the Senate Speaker of the House of Representatives This Act which originated in the House of Representatives was finally passed by the House of Representatives and the Senate on February 6. shall formulate the rules and regulations to implement this Act. (SGD. – All laws. SEC. – In the event that any provision of this Act is declared unconstitutional. Approved. (SGD.The Council shall meet once every three (3) months. shall each make provisions for the Secretariat of the Council. Republic Act 8525 The DECS.) FIDEL V.) HEZEL P. GONZALES (SGD. 1998. decrees. and TESDA. SEC.) ROBERTO P. 1998 (SGD. 8. CHED. RAMOS President of the Philippines 16 . 9. NAZARENO Secretary of the Senate Secretary General House of Representatives Approved: FEB. Repealing Clause. in consultation with the Department of Finance.) JOSE DE VENECIA JR. the validity of the other provisions shall not be affected by such declaration. The chairpersons and members shall not receive compensation but shall be entitled to reimbursements for reasonable expenses related to the Council’s activities. 10. – The DECS. 11. through a mutual agreement.) NEPTALI A. orders. SEC. rules and regulations or parts thereof inconsistent with this Act are hereby repealed or modified accordingly. – This Act shall take effect fifteen (15) days after its publication in two (2) national newspapers of general circulation. GACUTAN SGD. Rules and Regulations. Effectivity. Separability Clause. SEC. 14. CHED and TESDA.

8525. computer and science laboratories. DEFINITION OF TERMS.A.” (b) “Adopt-a-School Program” – or “Program” shall refer to a program which allows private entities to assist a public school in a particular aspect of its educational program within an agreed period. – Pursuant to Sections 4 and 244 of the National Internal Revenue Code (Tax Code) of 1997. and food and nutrition. corporation or cooperative. which enters into an Agreement with an adopting private entity concerning assistance referred to under paragraph (e) hereof.BIR Revenue Regulations 10-2003 BIR REVENUE REGULATIONS REPUBLIC OF THE PHILIPPINES DEPARTMENT OF FINANCE BUREAU OF INTERNAL REVENUE Quezon City January 27. otherwise known as the “Adopt-a-School Act of 1998. secondary. SCOPE. whether elementary. 17 . 10-2003 SUBJECT: Implementing the Tax Incentives Provisions of Republic Act No. learning support. like a partnership. 2003 REVENUE REGULATIONS NO. or with the Commission on Higher Education (CHED). the following terms are operationally defined as follows: (a) “Act”-refers to Republic Act No. – For purposes of these Regulations. who/which teams up with the Department of Education (DepEd). 2. the following Regulations are hereby promulgated to implement the tax provisions of R. otherwise known as the “Adopt-a-School Act of 1998. (d) “Private entity” – shall refer to an individual engaged in trade or business or engaged in the practice of his profession or other business organizations.” SEC. or with the Technical Education and Skills Development Authority (TESDA). in infrastructure. It shall be known hereafter as the adopting private entity. SECTION I. teaching and skills development. Assistance may in the form of. either resident or non-resident. Otherwise Known as the “Adopt-a-School Act of 1998” TO : All Internal Revenue Officers and Others Concerned. 8525. (c) “Public school” – shall refer to a government school. towards providing much needed assistance and service to public schools. but not limited to. No. postsecondary or tertiary. 8525. (e) “Assistance” – shall refer to the aid/help/ contribution/donation provided by an adopting private entity to a public school.

subject to limitations. (2. including the tasks and responsibilities of the contracting parties. (b) Exemption of the Assistance made by the donor from payment of donor’s tax pursua nt to Sections 101 (A)(2) and (B)(1) of the Tax Code of 1997. indicating in particular where and how the assistance has been utilized as supported by the Agreement. (3) That the application. namely the DepEd. together with the approved Agreement endorsed by the National Secretariat. CHED. 18 .1) The amount of expenses being claimed as deduction. (h) “Application for tax incentives or tax exemption” – shall refer to the application for tax credit by the adopting private entity referred to under Section 4 of the Act. conditions and rules set forth in Section 34(H) of the Tax Code plus and additional amount equivalent to fifty percent (50%) of such contribution/donation subject to the following conditions: (1) That the deduction shall be availed of in the taxable year in which the expenses have been paid or incurred. 3. (g) “National Secretariat” – shall refer to the office composed of representatives of the three education agencies.3) Proof or acknowledgement of receipt of the contributed/donated property by the recipient public school. directly and exclusively incurred for the Program. shall be entitled to the following tax incentives: (a) Deduction from the gross income of the amount of contribution/donation that were actually.2) The direct connection or relation of the expenses to the adopting private provide a list of subjects and/or activities undertaken and the cost of each undertaking. shall be fi led with the Revenue District Office (RDO) having jurisdiction over the place of business of the donor/adopting private entity. – A pre-qualified adopting private entity. which will provide overall management and coordination of the Program. and TESDA. and (2. (2) That the taxpayer can substantiate the deduction with sufficient evidence. TAX INCENTIVES ACCRUING TO THE ADOPTING PRIVATE ENTITY. which enters into an Agreement with a public school. such as official receipts or delivery receipts and other adequate records(2. if the contribution/donation is in the form of real property.BIR Revenue Regulations 10-2003 (f) “Agreement” – shall refer to a Memorandum of Agreement (MOA) or Agreement/Deed of Donation entered into by and between the adopting private entity and the public school specifying the terms and conditions of the adoption. which means application for additional deduction in arriving at the net taxable income. copy furnished the RDO having jurisdiction over the property. SEC.

If the local donation is not considered as a “transaction deemed sale”. CHED. however. if the said property had already been used. (ii) Consumable goods. VAT on importation payable by the concerned national government agency namely. on the importation of goods shall be assumed by the DepEd. and therefore. the same shall be subject to VAT on the transfer of the said goods or properties under Section 106 (B)(1) of the Tax Code. (b) In the case of local donation considered as “transaction deemed sale” of goods or properties originally intended for sale by the adopting private entity. (b) Assistance/contribution or donation other than money. (a) In the case of foreign donation. (iv) Real property.– If the assistance is in the form of consumable goods.BIR Revenue Regulations 10-2003 SEC. (DepEd. the amount of the contribution of donation shall be based on the value of the services rendered as agreed upon by the donor and the service provider and the public school as fixed in the Memorandum of Agreement. if any. the donee-public school. (iii)Services. OTHER TAX CONSEQUENCES OF THE ASSISTANCE TO THE PUBLIC SCHOOL. 4. or the importer thereof. the VAT and excise tax. The said donor/adopting private entity. or TESDA) to the National Government arising from the subject foreign donation is deemed automatically appropriated and shall be considered as expenditure of the government pursuant to the provisions of Section 13 of the Government Appropriation Act (GAA) as determined by the Congress on an annual basis. the amount of the contribution or donation shall be the fair market value of the property at the time of the contribution/donation. – If the contribution or donation is in the form of personal property. On the other hand. the amount of contribution or donation shall be based on the acquisition cost of the said assistance or contribution. th en the transfer of he goods or properties to the public school shall be exempt from VAT. VALUATION OF THE ASSISTANCE/ CONTRIBUTION OR DONATION. zero-rated sales and exempt sales. 5. except in cases where the importation is exempt from VAT under Section 109 of the Tax Code. – If the assistance is in the form of services. is entitled to claim the availment input tax subject to the rules on allocation among taxable sales. whichever is lower. or the actual expenses incurred by the donor. not entitled to any input VAT. the amount of the contribution or donation shall be based on the acquisition cost by the donor or the actual cost thereof at the time of the donation. whichever is lower.(i) Personal property. – If these assistance is in the form of real property.The amount of assistance /contribution or donation shall be based on the actual amount contributed/donated appearing in the official receipt issued by the donee. shall be deemed as the final consumer/end user. then such valuation such take into consideration the depreciated value of the property. In this connection.(a) Cash assistance/contribution or donation.. SEC. as determined pursuant to Section 6(E) of the Tax Code or the book 19 . CHED. However.

CAMACHO Secretary of Finance Recommending approval: (SGD. JR. PARAYNO. and (v) other adequate records showing the direct connection or relation of the expenses being claimed as deduction/donation to the adopting private entity’s participation in the program. – In order to avail of the tax incentives provided for under these Regulations. copy furnished the RDO having jurisdiction over the property if the donation or contribution is in the form of real property. (iii) Official receipts or any document showing the actual value of the contribution/donation. (b) Adopting private entity shall submit application for entitlement to the additional 50% special deduction from the gross income. copy furnished the RDO having jurisdiction over the donated real property. the following: (i) duly notarized/approved Agreement. and other revenue issuances or parts thereof. (SGD. and for exemption from donor’s tax to the RDO having jurisdiction over the place of business of the adopting private entity. which are inconsistent with these Regulations are hereby repealed or modified accordingly. Appraisal increase or appreciation in the value of the asset recorded in the books of account should not be considered in computing the book value of the asset. Commissioner of Internal Revenue 20 . (iv) Certificate of Title and Tax declaration. 8.) JOSE ISIDRO N. (ii) duly notarized Deed of Donation. – These regulations shall take effect fifteen (15) days after publication in the Official Gazette or in a newspaper of general circulation. whichever comes first.BIR Revenue Regulations 10-2003 value/depreciated value of the property. – All revenue rules and regulations. 7. as well as showing or proving receipt of the donated property. SEC. whichever is lower. SEC. if the donation is in the form of real property. SEC. 6. viz: (a) National Secretariat shall endorse to the RDO of the Bureau of Internal Revenue (BIR) having jurisdiction over the place of business of the adopting private entity. EFFECTIVITY. PROCEDURES FOR THE AVAILMENT OF TAX INCENTIVES UNDER THE PROGRAM BY THE ADOPTING ENTITY.) GUILLERMO L. the following procedures and requirements should be complied with. REPEALING CLAUSE.

teaching and skills development. h. learning support. CHED. 21 . 8525. RULE Definition of Terms – When used in these Rules. i. either resident or non-resident.a s members. Secretariat refers to an office created in the respective offices of DepED. s. Assistance refers to the help/aid/contribution/donation provided by an adopting entity to a public school. the following terms shall be defined as follow: a. otherwise known as the “Adopt a School Act of 1998” enacted on February 14. whether elementary. secondary. like a partnership. and TESDA which will provide overall management and coordination of the Program. 1998. 8525) hereinafter referred to as the “Rules”. Adopting Private Entity refers to an individual engaged in trade or business or in the practice of his profession or other business organizations. and food and nutrition. which enters into an Agreement with an adopting entity concerning assistance herein referred to. National Secretariat refers to an office composed of representatives of the three education agencies.Joint Implementing Rules and Regulations (Enclosure to DepED Order No. who/which teams up with the Department of Education (DepED). Adopt-a-School Program refers to a mechanism which allows private entities to assist public school in particular aspect of educational program within an agreed period of time. Act refers to Republic Act No. or with the Technical Education in Skills Development Authority (TESDA). and TESDA with the primary function of managing and coordinating the Program. 66. post-secondary or tertiary. RULE Purpose – The purpose of these Rules is to ensure the effective and efficient implementation and enforcement of the provisions of Republic Act No. b. computer and science laboratories. monitor and decide on policy matters related to the implementation of the Adopt a School Program. f. 8525) Pursuant to Sections 8 of the Republic Act No. Agreement refers to the Memorandum of Agreement (MOA) entered into by and between the adopting private entity and the public school specifying the terms and conditions of the adoption. including tasks and responsibilities of the contracting parties. c. the following rules and regulations are hereby adopted to implement the provisions of the said Act: PART I. corporation or cooperative. 8525. g. namely DepED. Public School refers to a government school. 2003) Department of Education Technical Education in Skills Development Authority Commission on Higher Education Joint Implementing Rules and Regulations of “Adopt a School Act of 1998” (RA No. towards providing much needed assistance and service to public school. d. e. Coordinating Council refers to a body chaired by the Secretary of DepED and co-chaired by the Chairman of the CHED and the Director General of the TESDA and with the Chairperson of the National Anti Poverty Council (NAPC) and a representative from a National Federation of Chambers of Commerce and Industry to be appointed by the President of the Philippines. Assistance maybe in the form of infrastructure. PRELIMINARY PROVISIONS RULE Title – These rules and regulations shall be known as the Implementing Rules of the Adopt a School Act of 1998 (RA No. It shall be tasked to coordinate. CHED. 8525. Commission on Higher Education (CHED).

22 . RULE Qualifications for Participating Schools. – Provisions of existing laws to the contrary notwithstanding. Delivery and utilization of proposed project. 10-2003. b. The Agreement shall be for a minimum of at least two (2) years subject to extension. PART III. Further. Provincial Technical Education and Skills Development Committee (PTESDC) and CHED/PASUC Regional offices are encouraged to conduct review of the program and submit their recommendations to the Coordinating Council. It must have been in existence for at least one year as shown in by its Articles of Incorporation from SEC or Certificate of Registration at the Cooperative Development Authority (CDA). and thereafter ratified by the concerned Regional Director of CHED. It must not have been prosecuted and found guilty of engaging in illegal activities such as money laundering and other similar circumstances. low income municipalities. insufficient budget or having numerous poor but high performing learners. and other local government units (LGUs) experiencing severe classroom shortages. PTESDC.Joint Implementing Rules and Regulations PART II. – Any government school in all levels may participate in the program. Provided that said period maybe shortened if the Adopting Private Entity is dissolved prior to the end of such period or unless otherwise terminated due to failure of the Adopting Private Entity to posses qualifications as stated in the Act. RULE Periodic Review – A review of the adoption shall be undertaken by the Local School Board (LSB) of the province or city where the school is located. Participation of other stakeholders to support the project. The Adopting Private Entity may appeal the assessment of the LSB. b. RULE Qualification of Adopting Private Entity – All Adopting Private Entity participating in the Adopt a School Program must posses the following qualifications at any time during the term of the Agreement: a. the following procedures and requirements should be complied with: RULE Agreement between the Adopting Private Entity and the School – A Memorandum of Agreement (MOA) specifying the details of the adoption shall be entered into between the Adopting Private Entity and the head of the school concerned. they may also recommend the termination of the program due to poor performance of parties and other grounds as maybe issued by the Coordinating Council. and CHED to the Coordinating Council whose decisions shall be final and appealable. expenses incurred by the Adopting Private Entity for the “Adopt -A-School Program’” shall be allowed an additional deduction from the gross income equivalent to fifty percent (50%) of such expenses. PROCEDURES FOR PARTICIPATION IN THE ADOPT-A-SCHOOL PROGRAM In order to participate in the Adopt a School Program. and c. c. Impact of proposed project on the school and the community in terms of social benefits. It must have a credible track record. The tax incentives provided herein as well as valuation of assistance shall be covered by BIR Revenue Regulation No. about the implementation of the Adopt a School Program pursuant to guidelines as maybe periodically issued by the Coordinating Council including but not limited to: a. LSB. Priorities shall be given to schools located in poorest provinces. Provincial Director of TESDA and Division Superintendent of DepED. TAX INCENTIVES RULE Additional Deductions for Expenses Incurred for the Adoption.

3. and d.” Moreover. PART IV. MOA. An application letter for duty/tax free importation. the Adopting Private Entity shall be represented in the local school board of the municipality where the adopted elementary or high school is located. 2. After approval of the application by the Coordinating Council. Donated articles shall not be resold or transferred for material consideration. Monitor and evaluate the implementation of the Program. Formulate policies and guidelines to ensure the proper implementation of the Program. and the following documents to the Secretariat for consideration of the Coordinating Council. the Adopting Private Entity shall file an application for tax deduction accompanied by supporting documents to Coordinating Council through the National Secretariat. Deed of Undertaking indicating that donated articles shall be used actually and directly for educational purposes. The Council shall have regular meeting once every three (3) months or as the need arises. 23 . A member maybe represented by a person in case of the absence of any member of the Coordinating Council. Provide policy guidance and direction for the implementation of the provisions of RA 8525. the absent member is required to send a representative who must posses the rank of at least an Undersecretary/Commissioner/ Deputy Director-General or higher. in addition to the incentive provided in the preceding section. shall be entitled to have its name emblazoned beneath the name of the school after words indicating that he school is under the “Adopt-A-School Program. copy furnished the RDO having jurisdiction over the property of the donation or contribution is in the form of real property. RULE Additional Incentives – the adopting company or enterprise. TESDA’s Provincial Director and CHED’s Regional Director. The Coordinating Council shall then transmit all approved application for tax/duty free importation of foreign donations to the Department of Finance for their appropriate action. 1. b. c. he shall send a representative who must be an Undersecretary or its equivalent rank such as Commissioner or Deputy Director-General: provided. that the highest ranking member present shall preside over the meeting in case the Chairperson is absent. RULE Foreign Donations – Any application for tax/duty free importation of foreign donation shall be endorsed by DepED’s Schools Division Superintendent.Joint Implementing Rules and Regulations RULE Claim for Tax Deduction by Private Resident – At the end of fiscal year. PROGRAM ADMINISTRATION RULE Coordinating Council – The Coordinating Council is hereby created to spearhead the implementation of this Act. Serve as an advisory body on all policy matters pertaining to the program. Whenever member is unable to attend the meeting of the Coordinating Council. It shall have the following powers and functions: a. The Coordinating Council shall act on the application within thirty (30) days from the receipt of the application by the Secretariat. T he applicant shall submit the aforementioned endorsement. the Secretariat shall endorse it to the Regional District Officer (RDO) of the Bureau of Internal Revenue (BIR) having jurisdiction over the place of business of the Adopting Private Entity.

Further. it shall be mandated to provide overall management and coordination of the Program and to perform the following functions: a. plans and priorities to the Coordinating Council. Implement the policies set by the Coordinating Council. July 2003. (original signed) EDILBERTO C. Department of Education (original signed) ROLANDO R. Further. b. MISCELLANEOUS PROVISIONS RULE Separability. It shall be provide with technical and administrative support from DepED and shall hold office in the premises of DepED. RULE Benefits. that they shall be entitled to reimbursements for reasonable expenses related to their performance of activities directly connected with the implementation of the Act. – These Rules shall take effect thirty (30) days after its publication in a national newspaper of general circulation and submission of a copy to the University of the Philippines Law Center. PART V. d. Technical Education in Skills Development Authority 24 . DE JESUS Secretary. Provide technical assistance and support in critical areas and stages of implementation. and Emoluments of the Council and Secretariat – The members of the Coordinating Council and the representatives of the tri-focal agencies to the Secretariat shall not receive compensation in connection with the performance of their functions. Endorse to the Regional District Office (RDO) of the Bureau of Internal Revenue (BIR) documents relative to the availment of the tax incentive provisions of the Adopt-a-School Law after application is approved by the Coordinating Council. c. e. Perform other functions as necessary. and TESDA shall make provisions for the organization of their own Secretariat to manage and coordinate the implementation of the Program by the respective agencies. DIZON Chairman. RULE Effectivity. Commission on Higher Education (original signed) ALCESTIS M. Provide. Recommend policies. GUIANG Director-General. CHED. Pasig City. Privileges. and CHED. and f. Coordinate the Program at all levels. In the event the one or more or its provisions are held to be invalid. the validity of the other provisions shall not be affected thereby. TESDA. DepED.Joint Implementing Rules and Regulations RULE Secretariat – The National Secretariat shall be composed of representatives of DepED. – The provisions of these Rules are hereby declared to be separable.

CHED. Letter of request to avail tax incentives 2. Certificate of Title and Tax Declaration – Real Property 10. A. Endorsement from the ASP National Secretariat (signed by members of the ASP Council and facilitated by the ASP National Secretariat) B. TESDA) for approval and signing Endorsement request review and approval Memorandum of Agreement (for multiple projects. Below are the required documents and work-flow for tax incentives: 1. Duly notarized Deed of Acceptance 5. Duly notarized signed Memorandum of Agreement (must be signed before project implementation) 3. Below is the process flow for tax incentives: Project Development Submission of requirements for tax incentive endorsement (January 31) Submission of endorsement request with completed requirements to ASP Council Members (DepEd. they can avail of up to 150% tax incentives for their contributions through the Adopt-A-School Program (ASP). Official Receipts or any documents showing actual expenses incurred for the project / actual value of donation 8. Summary of Expenses 7. Duly notarized Deed of Donation 4. a Memorandum of Understanding Project Implementation Filing of income tax return with approved endorsement and other documents to BIR RDO by private sector partner (April 15) Review and Approval of tax incentive claim by BIR Project Monitoring and Evaluation Tax incentive application 25 . Cost of Goods donated 9.Tax incentives In recognition of the goodwill that private sector partners provide to the Philippines public education system. Name of the Recipient School/s 6. The ASP Secretariat assists these partners by facilitating endorsements for tax incentives application from the ASP Council which will then be submitted to the Bureau of Internal Revenue (BIR).