Title
Philippine Transnational Higher Education Law
Law
Republic Act No. 11448
Decision Date
Aug 28, 2019
The Transnational Higher Education Act aims to modernize the Philippine higher education sector by allowing partnerships with foreign institutions, establishing standards for foreign higher education institutions, and creating a division to oversee transnational higher education programs, with the goal of improving the country's human resource base and fostering cultural exchange.

Declaration of Policy

  • The State aims to provide quality and relevant higher education aligned with societal needs.
  • Higher education is a key tool for generating knowledge, innovation, and skills for global competitiveness.
  • Recognizes globalization's impact on education including borderless teaching and learning.
  • Seeks to modernize Philippine higher education with international standards and expertise.
  • Encourages the establishment and growth of transnational higher education (TNHE) programs.
  • Aims to strengthen cultural, social, economic, and political ties between Philippine and foreign HEIs.
  • Promotes collaborative arrangements for capacity building and student international exposure.

Definition of Terms

  • Defines key terms including Academic Franchising, Branch Campus, Double Degree, Distance Education, Foreign Higher Education Institution (FHEI), International Branch Campus, Joint Degree, Offshoring, Open Distance Learning (ODL), Providing Institution, TNHE, and related arrangements.
  • Clarifies the scope and nature of various transnational education modes and institutional roles.

Strategy for TNHE

  • The Commission on Higher Education (CHED) shall develop a coherent national strategy to foster effective TNHE programs and institutions.

Establishment of TNHE Programs

  • TNHE programs must be established and managed by duly authorized HEIs.

Types or Modes of TNHE

  • TNHE includes:
    • Academic Franchising
    • Articulation
    • Branch Campus
    • International Branch Campus
    • Joint Degree
    • Double Degree
    • Online, Blended, and Distance Learning
    • Open Distance Learning (ODL)
    • Offshore Institutions
    • Twinning Arrangements
    • Validation
  • CHED may recognize additional TNHE modes adhering to national laws and development plans.

Commercial Presence of FHEIs

  • Foreign HEIs (FHEIs) may operate in the Philippines through arrangements consistent with the Constitution and law.
  • Minimum standards for FHEIs include government recognition in their country, accreditation, strong faculty and curriculum, and sufficient resources.

Partnerships and Collaborative Arrangements

  • FHEIs may engage in collaborative programs with Philippine HEIs including twinning and joint degrees.
  • Requirements include:
    • CHED prior approval
    • Partner HEIs must be CHED-recognized and accredited
    • Legally binding Memorandum of Agreement (MOA)
    • Academic quality comparable to local or international standards
    • Accredited and quality-assured programs
    • Transparency and government authorization for public announcements
  • HEI partners must be registered with the SEC or DTI for educational and auxiliary services.

Establishment of Branch Campuses

  • FHEIs may establish branch campuses in the Philippines through a local partner majority-owned (60%) by Filipino citizens.
  • Branch campuses may retain the FHEI name, award degrees, and be jointly managed.
  • Foreign faculty may compose up to 80% of academic personnel; up to 40% administrative staff; foreign students limited to one-third of enrollment.
  • Incorporation requires SEC approval and bond posting to guarantee obligations.

Philippine HEIs Operating Offshore

  • Only CHED-recognized Philippine HEIs may offer education offshore.
  • Must comply with laws of the host country.
  • Must provide support services for offshore students spending time in the Philippines.

Programs and Degrees Offered

  • TNHEIs may offer undergraduate, graduate, and postgraduate degrees.
  • CHED reviews curricula to ensure international standard compliance except for top 500 ranked universities, which are exempt unless ranking changes.

Quality Assurance

  • Both awarding and providing TNHE institutions are responsible for internal quality assurance.
  • They shall cooperate with CHED and accreditation bodies for quality control.
  • Top 500 ranked TNHEIs have exemptions from standard CHED quality reviews.

Benchmarks for Ensuring Quality

  • CHED and accrediting bodies evaluate TNHEIs on:
    • Curriculum innovation
    • Student diversity
    • Research and development output
    • Graduation and retention rates
    • Job placement and career services
    • Facilities and infrastructure
    • Faculty credentials and diversity
    • Alumni leadership, performance, and participation
    • International linkages
    • Grant and endowment management
    • Other relevant criteria such as environmental sustainability and social responsibility

Creation of Transnational Higher Education Division (TNHED)

  • TNHED established within CHED's International Affairs Staff to handle all TNHE matters.
  • Responsibilities include policy formulation, application processing, performance evaluation, and regulatory functions.

Role of Government Agencies

  • SEC, LGUs, BI, DOLE, PRC, and others must establish mechanisms to expedite registrations, permits, visas, certifications, and licenses related to TNHE.
  • Agencies must report progress to Congress within six months.

Tax Exemptions

  • Revenues and assets of nonstock, nonprofit TNHEIs used directly for education are tax-exempt.
  • Donations and grants to TNHEIs enjoy donor's tax exemption and deductions.
  • Land and buildings used exclusively by TNHEIs for educational purposes are tax-exempt.
  • TNHEIs are entitled to tax incentives under existing laws.

Proprietary TNHEIs

  • TNHEIs not qualifying as nonstock nonprofit are deemed proprietary and subject to taxes under the National Internal Revenue Code.
  • Eligible proprietary TNHEIs may avail of benefits under existing investment and export laws.

Repatriation of Capital and Remittance

  • Foreign investments in TNHEIs may repatriate capital and earnings through authorized channels if registered with Bangko Sentral ng Pilipinas.
  • Compliance with BSP regulations is mandatory.

Labor and Management Relations

  • Labor relations governed by existing Philippine labor laws.
  • Employees shall enjoy conditions not less favorable than those under the Labor Code and relevant issuances.

Termination of Partnership or Program Closure

  • TNHE institutions must honor commitments to enrolled students upon termination or closure.
  • Must provide alternative pathways for program completion.
  • Assets and funds may be transferred or remitted in accordance with applicable laws.

Continuing Research

  • CHED shall continuously conduct research to improve TNHE and internationalization of higher education for knowledge enhancement and revenue generation.

Appropriations

  • Initial implementation funded from CHED's current appropriation.
  • Subsequent funding included in annual General Appropriations Act budget.
  • TNHED's budget included under CHED's annual budget.

Implementing Rules and Regulations

  • CHED Chairperson to issue implementing rules within 90 days after effectivity.
  • Consultation with relevant government agencies and stakeholders required.
  • Rules take effect 15 days after publication in a newspaper of general circulation.

Separability Clause

  • If any provision is declared unconstitutional, remainder of law remains effective.

Repealing Clause

  • Laws inconsistent with this Act are amended, modified, superseded, or repealed.

Effectivity

  • Act takes effect 15 days after publication in the Official Gazette or newspaper of general circulation.

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