THERE is now confusion as to the taxation of educational institutions which are proprietary, stock or for profit.

Aside from decreasing the regular corporate income taxto 25 percent or 20 percent in certain cases, the Corporate Recovery and Tax Incentives for Enterprises (Create) Act or Republic Act (RA) 11534 reduced the special corporate income tax on “proprietary educational institutions and hospitals which are non-profit” from 10 percent to one percent under Section 27(B) of our National Internal Revenue Code, as amended,for a period of three years from July 1, 2020 to June 30, 2023.

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