What is the maximum limit for the apprenticeship tax deduction relative to direct wages?
While the government provides generous tax incentives for apprenticeship programs, these deductions are subject to strict mathematical caps. The law ensures that the tax benefit remains proportionate to the company’s actual standard labor expenditures. Specifically, the allowable deduction from taxable income for labor training expenses shall not exceed ten percent of the direct labor wage. This important financial limitation on the corporate tax incentive is clearly stipulated in Article 71 Labor Code of the Philippines. “…Provided, further, That such deduction shall not exceed ten (10%) percent of direct labor wage…” 31-May-26About Nicolas and De Vega Law Offices
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