Text of the provision
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: Provided, That such program is duly recognized by the Department of Labor and Employment: Provided, further, That such deduction shall not exceed ten (10%) percent of direct labor wage: and Provided, finally, That the person or enterprise who wishes to avail himself or itself of this incentive should pay his apprentices the minimum wage.
Labor Code of the Philippines, Presidential Decree No. 442, as amended. Reproduced in full from the official enactment and verified against the LawPhil and ChanRobles renderings.
What this article means
Grants an extra deduction from taxable income of one-half of the training expenses spent on developing apprentices, provided the program is recognized by the Department of Labor, the deduction does not exceed ten percent of direct labor wage, and the employer pays his apprentices the minimum wage.
Questions about this provision
- Can my company deduct the cost of training apprentices from its taxable income?
- Does a company have to pay its apprentices the minimum wage to claim the training tax incentive?
Related provisions
- Article 70 — Voluntary Programs And Exceptions.
- Article 73 — Learners Defined.
A note on article numbers. The articles of the Labor Code have been administratively renumbered, so the same provision is often cited under a different number. Supreme Court decisions write both, in the form “Article 297 [282]” — the new number first, the original in brackets. The text on this page is published under its original number, which is the numbering both source texts use. When citing, check which numbering your source follows.
Cases interpreting this article
- Authorities on this article will be added here as each is verified against primary sources.