BPOs urged to donate computers to schools to avail of tax benefits

Published by rudy Date posted on September 29, 2009

MANILA, Philippines – The chairman of the House committee on information and communications technology  has urged the country’s business process outsourcing (BPO) providers, mostly contact centers, to avail themselves of gainful tax benefits by donating computers under the Adopt-a-School Program.

Catanduanes Rep. Joseph Santiago revealed that under the Adopt-a-School Program,  BPO providers and other private firms that extend financial aid to “adopted” public schools are entitled to claim a taxable gross income deduction equal to 150 percent of their contribution.

To illustrate, Santiago said a private entity that donates P500,000-worth of brand new computers may claim a P750,000-deduction from taxable gross income.

He said Congress established the program through Republic Act 8525, in order to encourage private entities to help the government address the public school system’s severe resource shortages.

Besides donations to modernize instructional technologies, Santiago explained that qualified contributions may also be in the form of support for faculty development, the construction and upgrading of school facilities, the provision of textbooks and other teaching materials.

For the purpose of claiming deductions, the valuation of aid other than cash would be based on the acquisition cost or purchase price of the property, equipment, materials and services supplied. However, donations of used properties such as second-hand computers would be subject to depreciation.

Members of the Business Processing Association of the Philippines and the Contact Center Association of the Philippines “should contribute in a big way to the advancement of computer literacy and school connectivity,” Santiago said.

“Highly computer-literate and Internet-savvy young people are needed to enable the future human resources required by BPO providers,” he pointed out.

Santiago earlier disclosed that a total of P1.1 billion has been allotted to provide Internet connectivity to 9,048 public elementary and high schools countrywide. — Mary Ann Reyes, Philippine Star

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