What tax deduction is granted to an enterprise organizing an apprenticeship program?
The government heavily incentivizes private enterprises that actively participate in developing the country’s skilled and efficient labor force. An enterprise organizing a duly recognized apprenticeship program is entitled to a specific financial benefit to offset their operational expenses. They are granted an additional deduction from their taxable income equivalent to one-half of the value of labor training expenses incurred. This substantial tax incentive for developing the productivity of apprentices is outlined in Article 71 Labor Code of the Philippines. “ART. 71. Deductibility of Training Costs. – An additional deduction from taxable income of one-half (1/2) of the value of labor training expenses incurred for developing the productivity and efficiency of apprentices shall be granted to the person or enterprise organizing an apprenticeship program…” 31-May-26About Nicolas and De Vega Law Offices
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