Book II — Human Resources Development
Article 71Deductibility of training costs.
ELI5— what this means for you
Employers who run DOLE-approved apprenticeship programs and pay apprentices at least minimum wage may deduct 1.5 times the training cost from taxable income — up to 10% of direct labor wage.
Key point
Official text — PD 442
Deductibility of training costs.
An additional deduction from taxable income of one-half (1/2) of the value of labor training expenses incurred for developing the productivity and efficiency of apprentices shall be granted to the person or enterprise organizing an apprenticeship program: Provided, That such program is duly recognized by the Department of Labor and Employment: Provided, further, That such deduction shall not exceed ten (10%) percent of direct labor wage: and Provided, finally, That the person or enterprise who wishes to avail himself or itself of this incentive should pay his apprentices the minimum wage.
Source: lawphil.net (PD 442 as amended)
RELATED RIGHTS
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