Section 20Sec./Art. 20

Deductible Training Experience. - Notwithstanding any law to the contrary, an enterprise implementing a registered EBET Program shall be qualified to avail of an additional deduction from taxable income equivalent to fifty percent (50%) of actual training expenses from the effectivity of this Act up to December 31, 2027: Provided, That starting January 1, 2028, the additional deduction shall increase to seventy-five (75%) of the actual training expenses: Provided, further, That such deduction shall not exceed five percent (5%) of the total direct labor expenses, or Twenty-five million pesos (P25,000,000.00) a year, whichever is lower. For this purpose, the enterprise shall secure the proper certification from the TESDA.

An enterprise registered with an investment promotion agency and implementing an EBET Program may opt to avail of the incentives either under this Act or the applicable fiscal incentives under Title XIII of the NIRC of 1997, as amended: Provided, That the availment of incentives under Title XIII of the NIRC, as amended, shall preclude the simultaneous availment of fiscal incentives under this Act.

The DOF, the TESDA, and the BIR, in consultation with relevant stakeholders, shall formulate the necessary rules and regulations to implement the provisions of this section, which shall include streamlined processes to encourage broader participation of enterprises.