THE Philippines has recognized the importance of building human capital. Together with 192 other United Nations member states, the country in 2015 committed to attaining the 17 Sustainable Development Goals (SDGs) by 2030. SDG 4, in particular, calls for ensuring inclusive and equitable quality education, and one of its underlying principles is that 'education is a public good, of which the state is the duty bearer.'

The Philippine government is supportive of educational institutions. Through the Bureau of Internal Revenue (BIR), it has granted preferential tax rates and exemptions to educational institutions. For example, Section 30 of the Tax Code provides that a nonstock, nonprofit educational institution whose income is directly and exclusively used for educational purposes is exempt from income tax.