Legal basis and governing authority
- These implementing rules are issued pursuant to Section 8 of Republic Act No. 8525.
- The rules implement the provisions of Republic Act No. 8525, also known as the Adopt a School Act of 1998.
- The rules cover tax matters by referencing BIR Revenue Regulation No. 10-2003 for coverage of tax incentives and valuation of assistance.
Purpose and policy direction
- The rules ensure the effective and efficient implementation and enforcement of Republic Act No. 8525.
Definitions and key program terms
- “Act” refers to Republic Act No. 8525.
- “Adopting Private Entity” refers to a person engaged in trade or business, practice of profession, or other business organizations (including a partnership, corporation, or cooperative), resident or non-resident, that teams up with DepEd, CHED, or TESDA to provide assistance and service to a public school.
- “Adopt-a-School Program” is a mechanism allowing private entities to assist a public school in a particular aspect of an educational program within an agreed period.
- “Assistance” is help/aid/contribution/donation provided by an adopting entity to a public school, including infrastructure, teaching and skills development, learning support, computer and science laboratories, and food and nutrition.
- “Agreement” refers to a Memorandum of Agreement (MOA) between the adopting private entity and the public school, specifying terms and conditions, including tasks and responsibilities.
- “Coordinating Council” is chaired by the Secretary of DepEd, co-chaired by the Chairman of CHED and the Director-General of TESDA, and includes the Chairperson of the National Anti-Poverty Council (NAPC) plus a representative from a National Federation of Chambers of Commerce and Industry to be appointed by the President of the Philippines; it coordinates, monitors, and decides policy matters related to program implementation.
- “Public School” means a government school (elementary, secondary, post-secondary, or tertiary) that enters into an Agreement with an adopting entity concerning assistance.
- “National Secretariat” is an office composed of representatives of DepEd, CHED, and TESDA that provides overall management and coordination of the program.
- “Secretariat” is an office created in the respective offices of DepEd, CHED, and TESDA with the primary function of managing and coordinating the program.
Participation: MOA, qualifications, review
- The adoption requires an MOA specifying the adoption details to be entered into between the adopting private entity and the head of the school, then ratified by the concerned Regional Director, CHED Provincial Director, TESDA, and DepEd Division Superintendent.
- The Agreement must be for a minimum of at least (2) years, and it is subject to extension.
- The 2-year period may be shortened if the adopting private entity is dissolved prior to the end of the period or if the Agreement is terminated due to failure of the adopting private entity to possess qualifications stated in the Act.
- An adopting private entity must, at any time during the Agreement term, have:
- a credible track record;
- at least one year of existence shown by Articles of Incorporation from SEC or Certificate of Registration at the CDA; and
- no prosecution resulting in guilt for engaging in illegal activities such as money laundering and similar circumstances.
- Any government school at all levels may participate, with priorities given to schools in poorest provinces, low-income municipalities, and other LGUs with severe classroom shortages, insufficient budget, or numerous poor but high performing learners.
- Periodic review of adoption is undertaken by the Local School Board (LSB) of the province or city where the school is located, pursuant to guidelines issued by the Coordinating Council, covering:
- delivery and utilization of the proposed project;
- impact on the school and community in terms of school benefits; and
- participation of other stakeholders to support the project.
- The LSB, Provincial Technical Education and Skills Development Committee (PTESDC), and CHED/PASUC Regional offices are encouraged to conduct review, submit recommendations to the Coordinating Council, and may recommend termination for poor performance of parties and other grounds issued by the Coordinating Council.
- The adopting private entity may appeal the assessment of the LSB, PTESDC, and CHED to the Coordinating Council, whose decision is final and appealable.
Tax incentives and foreign donations
- Expenses incurred by an adopting private entity for the “Adopt-A-School Program” are allowed an additional deduction from gross income equivalent to fifty percent (50%) of such expenses, despite provisions of existing laws to the contrary.
- The tax incentives and valuation of assistance are covered by BIR Revenue Regulation No. 10-2003.
- At the end of the fiscal year, the adopting private entity must file an application for tax deduction with supporting documents to the Coordinating Council through the National Secretariat.
- The Coordinating Council acts on the application within thirty (30) days from receipt by the Secretariat.
- After approval, the Secretariat endorses the approved application to the Regional District Officer (RDO) of the Bureau of Internal Revenue (BIR) having jurisdiction over the adopting private entity’s place of business; the RDO with jurisdiction over the property is furnished when the donation or contribution is in the form of real property.
- For tax/duty-free importation of foreign donations, endorsement is required from the DepEd Division School Superintendent, TESDA Provincial Director, and CHED Regional Director.
- The applicant must submit to the Secretariat for Coordinating Council consideration:
- an application letter for duty/tax free importation;
- a Deed of Undertaking that donated articles shall be used actually and directly for educational purposes; and
- a commitment that donated articles shall not be resold or transferred for material consideration.
- The Coordinating Council transmits all approved foreign donation applications for tax/duty-free importation to the Department of Finance for appropriate action.
- Additional incentives include:
- having the adopting company’s name emblazoned beneath the name of the school with words indicating the school is under the “Adopt-a-School Program”; and
- representation of the adopting private entity in the local school board of the municipality where the adopted elementary or high school is located.
Administration: Coordinating Council and Secretariats
- A Coordinating Council is created to spearhead implementation of the Act and is empowered to:
- serve as an advisory body on all policy matters pertaining to the program;
- provide policy guidance and direction for program implementation;
- formulate policies and guidelines for proper implementation; and
- monitor and evaluate program implementation.
- The Coordinating Council holds a regular meeting once every three (3) months or as the need arises.
- A member may be represented during absence, but the absent member must send a representative with at least the rank of Undersecretary/Commissioner/Deputy Director-General or higher.
- When a member cannot attend, the member sends an Undersecretary or equivalent rank, such as Commissioner or Deputy Director-General.
- When the Chairperson is absent, the highest ranking member present presides.
- The National Secretariat consists of representatives of DepEd, TESDA, and CHED, provided with technical and administrative support from DepEd, and holds office at DepEd.
- The National Secretariat must provide overall management and coordination and performs functions to:
- implement policies set by the Coordinating Council;
- coordinate the program at all levels;
- recommend policies, plans, and priorities to the Coordinating Council;
- provide technical assistance and support in critical areas and stages of implementation;
- endorse to the RDO of the BIR documents for availment of tax incentive provisions after approval by the Coordinating Council; and
- perform other necessary functions.
- DepEd, CHED, and TESDA must make provisions for organization of their own Secretariats to manage and coordinate implementation within their respective agencies.
Compensation limits and reimbursements
- Members of the Coordinating Council and representatives of tri-focal agencies to the Secretariat do not receive compensation connected with performance of their functions.
- Members and representatives are entitled to reimbursement for reasonable expenses directly connected with implementation of the Act.
Miscellaneous: separability and effectivity
- The rules declare that their provisions are separable; invalidity of one or more provisions does not affect the validity of the other provisions.
- The rules take effect 30 days after publication in a national newspaper of general circulation and after submission of a copy to the University of the Philippines Law Center.